GBP/USD sidelined, now likely between 1.2400/1.2580 – UOB

Cable stays under pressure and is seen trading within a lower range betwee 1.2400 and 1.2580, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “GBP traded between 1.2456 and 1.2518, narrower than our expected sideway trading range of 1.2460/1.2550. Momentum indicators are still most ‘neutral’ and GBP is expected to continue to trade sideways, albeit likely at lower range of 1.2445/1.2515”.

Next 1-3 weeks: “GBP slipped to 1.2456 and closed lower for the second straight day (1.2479, -0.21%). While we continue hold the view that GBP is “likely to trade sideways”, the positive underlying tone detected previously has dissipated. In other words, our expectation for GBP to “test the top of the expected sideway range of 1.2430/1.2640 first” is unlikely to materialize. From here, GBP is expected to continue to trade sideways, even though likely at a lower and narrower range of 1.2400/1.2580”.