GBP/USD neutral, likely between 1.3370/1.3600 – UOB

FX Strategists at UOB Group stay neutral on Cable, expecting it to navigate within 1.3370 and 1.3600 in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that “another push lower towards 1.3420 seems likely before a more sustained recovery can be expected”. In line with expectation, GBP dipped to a low of 1.3410 before rebounding quickly. The recovery appears to have scope to extend higher but at this stage, a clear break above yesterday’s peak near 1.3515 seems unlikely (1.3485 is already quite a strong resistance). Support is at 1.3430 followed by 1.3400”.

Next 1-3 weeks: “We just shifted to a neutral stance yesterday and there is no change to the view. The current movement is viewed as the start of a consolidation phase and GBP is expected to trade sideways from here, likely between 1.3370 and 1.3600. On a shorter-term note, the bias is tilted to the downside but based on the current indications, a sustained move below 1.3370 is not expected”.