GBP/USD sticks to the neutral theme – UOB

FX Strategists at UOB Group suggested Cable should remain within the 1.2350/1.2600 range in the next weeks.

Key Quotes

“GBP traded at a much narrower range than anticipated and the muted price action suggests further sideways trading is likely, albeit likely at a higher range of 1.2480/1.2560. Last week’s top near 1.2580/85 is acting as very strong short-term level and is expected to offer stiff resistance”.

“GBP continues to trade mostly sideways and the neutral phase that started more than a week ago is still intact. However, the lower volatility seen over the past few days suggests a narrower consolidation range of 1.2350/1.2600 instead of the 1.2350/1.2670 expected previously”.