GBP/USD: Downside appears to be losing traction – UOB

Cable’s selling bias could be alleviated on a breakout of the 1.2600 mark, noted FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, GBP traded sideways between 1.2472 and 1.2567 before closing largely unchanged at 1.2496 (+0.01%). Further sideway trading would not be surprising even though the slightly weakened underlying tone suggests a lower trading range of 1.2460/1.2555.”

Next 1-3 weeks: “GBP traded sideways the past few days and downward momentum is beginning to ease. That said, there is still chance, albeit not a high one for GBP drop below last week’s low near 1.2410. Only a breach of the ‘strong resistance’ level at 1.2600 would indicate that the downside risk has dissipated.”