GBP/USD seen rangebound between 1.3010/1.3220 – UOB

Cable’s outlook remains neutral and it is expected to navigate within the 1.3010/1.3220 range in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that “there is room for GBP to edge above the 1.3150 resistance but the next resistance at 1.3180 is unlikely to be challenged”. In line with expectation, GBP rose to a high 1.3173 but the subsequent rapid drop that hit an overnight low of 1.3089 was not exactly anticipated. From here, the weakened undertone suggests that a dip below the 1.3089 low would not be surprising but 1.3060 is another strong support and a clear break of this level seems unlikely. On the upside, only a move back above 1.3150 would indicate that the current mild downward pressure has eased. Higher up, 1.3180 is still acting as a strong resistance”.

Next 1-3 weeks: “GBP traded sideways yesterday and closed largely unchanged (NY close of 1.3126, -0.05%). Indicators remain ‘flat’ and we continue to hold a neutral stance and expect GBP to trade sideways from here, likely within a 1.3010/1.3220 range”.