GBP/USD outlook shifted to neutral – UOB

Cable’s outlook now shifted to neutral from bearish, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “The up-move in GBP that hit an overnight high of 1.3227 came as a surprise. Despite the rise, upward momentum is patchy at best and further sustained up-move is not expected. However, a test of 1.3250 would not be surprising but at this stage, a move beyond 1.3285/90 seems unlikely. On the downside, a move back below 1.3160 would indicate that the current mild upward pressure has eased (minor support is at 1.3185)”.

Next 1-3 weeks: “The bearish phase that started last Friday ended quickly as GBP moved above the 1.3200 stop-loss yesterday. GBP has likely made a short-term low at 1.3027 and the current movement is viewed as the early stages of a consolidation phase. In other words, GBP is expected to trade sideways from here, likely within a 1.3100/1.3330 range”.