GBP/USD rangebound within 1.2830 and 1.3000 – UOB

Cable’s outlook remains neutral, while further consolidation is expected between 1.2830 and 1.3000, suggested FX Strategists at UOB Group.

Key Quotes

“The anticipated weakness in GBP exceeded our expectation by moving below the 1.2880 target to hit 1.2849. Despite the sharp bounce from the low, the undertone is still weak and a retest of 1.2845/50 seems likely. At this stage, a sustained drop below this level is not expected (next support at 1.2830). Resistance is at 1.2910 but only a move back above 1.2935 would indicate that the current weakness has stabilized”.

“While we indicated yesterday that the recent upward pressure has eased, the pull-back has been more rapid and resilient than expected. That said, the price action is still within the expected 1.2830/1.3000 consolidation range and while the risk is tilted to the downside, any weakness is expected to encounter strong support at 1.2830”.