GBP/USD sticks to the neutral bias – UOB

In view of FX Strategists at UOB Group, Cable’s neutral outlook should improve while it trades above 1.3190.

Key Quotes

24-hour view: “GBP traded sideways for most part of yesterday before dropping sharply during late NY hours to hit a low of 1.3225. The decline appears to be running ahead of itself but another leg lower towards 1.3190/95 seems likely. That said, a sustained move below this level is not expected. Resistance is at 1.3290 ahead of the high seen near 1.3315 early yesterday”.

Next 1-3 weeks: “GBP edged above the top end of our expected 1.3100/1.3330 consolidation last Friday and touched a high of 1.3337. The undertone has improved considerably but we think it is too early to expect a sustained up-move in GBP. There is another strong resistance at 1.3380 and only a daily closing above this level would indicate the start of a bullish phase. To put it another way, the odds for such a move are not high at this stage but would continue to improve as long as GBP can hold above 1.3190 in the coming days”.