GBP/USD further downside less likely – UOB

FX Strategists at UOB Group now expect Cable’s downside impulse to diminish in the near term.

Key Quotes

“GBP traded in a narrower and higher range than expected. The outlook remains mixed and further range trading is expected, likely between 1.2730 and 1.2800”.

“GBP traded in a relatively muted manner and closed largely unchanged last Friday. Downward momentum has waned further and this does not bode well for our current bearish view. Unless there is a sustained move below 1.2730 within these few days, a move above the stop-loss at 1.2820 would not be surprising. To put it another ways, the prospect for further GBP weakness has diminished”.