GBP/USD: Bias now shifted to the upside – UOB

Cable’s stance is now pointing to further upside in the near-term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that GBP ‘is expected to continue to trade sideways, likely between 1.2440 and 1.2510’. GBP subsequently traded within a narrower range than expected (between 1.2470 and 1.2520). The underlying tone has improve somewhat and this could lead to GBP edging higher to 1.2540. For today, the major resistance at 1.2580 is not expected to come into the picture. Support is at 1.2470 followed by 1.2450.”

Next 1-3 weeks: “GBP traded in relatively quiet manner over the past couple of days and there is not much to add to our view from last Thursday (02 Jul, spot at 1.2475). As highlighted, GBP is expected to trade with an upside bias but the prospect for a sustained advance above 1.2580 is not high for now. On the downside, only a break of 1.2400 (‘strong support’ level previously at 1.2355) would indicate the current upward pressure has eased.”