GBP/USD still neutral, points to further rangebound – UOB

In opinion of FX Strategists at UOB Group, the near-term stance around Cable still gyrates around extra rangebound likely between 1.2300 and 1.2600.

Key Quotes

“GBP recouped most of its steep loss on Monday by rebounding strongly to an overnight high 1.2527 from a low of 1.2388 seen during Asian hours. The up-move appears to have scope to extend further but at this stage, a sustained move above 1.2550 is not expected”.

“We have held a neutral view on GBP for close to 2 weeks now. The price action has been choppy but the range for the past two weeks is well within our expected consolidation range of 1.2300/1.2600. While shorter-term indicators are mildly supportive, only a clear break above 1.2600 would indicate that GBP has moved into a bullish phase. In the meanwhile, expect further choppy trading between 1.2300 and 1.2600”.