GBP/USD neutral, within 1.2850/1.3000 – UOB

FX Strategists at UOB Group stay neutral on Cable, expecting to gravitate between 1.2850 and 1.3000 in the short term.

Key Quotes

24-hour view: “Instead of ‘retesting’ last Friday’s peak at 1.2995, GBP eased off quickly to touch a low of 1.2913. The pullback appears to have scope to extend lower even though solid support can be expected at 1.2905 followed by another strong level near 1.2885. Resistance is at 1.2945 ahead of yesterday’s high near 1.2970”.

Next 1-3 weeks: “We have held the view that the “strong rebound in GBP has scope to extend higher to 1.3020” since last Monday (28 Aug). GBP hit a high of 1.2995 last Friday and upward pressure has eased rapidly with the subsequent pullback from the top. While the outlook for GBP is still viewed as neutral, this pair is more likely to trade sideways from here, likely within a 1.2850/1.3000 range”.