GBP/USD: Interim low in place? – UOB

In opinion of FX Strategists at UOB Group, Cable could now move within the 1.2800-1.3100 range in the next weeks.

Key Quotes

24-hour view: “Our expectation that the ‘rapid rebound in GBP could extend’ did not materialize as it traded sideways between 1.2914 and 1.2999. The underlying tone has weakened and from here, GBP could drift lower to 1.2875 (minor support is at 1.2900). For today, a sustained decline below this level is not expected. Resistance is at 1.2975 followed by 1.3000.”

Next 1-3 weeks: “There is not much to add to our latest narrative from last Thursday (17 Sep, spot at 1.2950). As highlighted, last week’s 1.2763 low is likely an interim bottom and GBP could consolidate between 1.2800 and 1.3100 for a period of time before attempting to move below 1.2763.”