GBP/USD is still seen within range – UOB

FX Strategists at UOB Group still see Cable trading within a broad range in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday ‘there is room for GBP to dip below 1.2835 but any weakness is viewed as a lower trading range of 1.2825/1.2900’. GBP subsequently dipped to 1.2827 before staging a surprisingly robust rebound (closed at 1.2926, +0.46%). While the rapid rise appears to be running ahead of itself, there is scope for GBP to extend to 1.2975. For today, last month’s peak at 1.3012 is not expected to be challenged. Support is at 1.2900 but only a move below 1.2880 would indicate that a short-term top is in place”.

Next 1-3 weeks: “Despite the relatively strong advance of +0.46% (NY close of 1.2926), upward momentum has not improved by much. The outlook is still mixed and GBP could continue to trade between the month-to-date low near 1.2770 and last month’s peak of 1.3012 for a while more. Looking forward, GBP edge above 1.3012 first but at this stage, the prospect for a sustained rally above this level is not high”.