GBP/USD likely in a topping process – UOB

FX Strategists at UOB Group stay neutral on Cable in the near term.

Key Quotes

“While there is no change to the current neutral outlook for GBP, the price action over the past few days is beginning to look increasingly like a topping process”.

“The current neutral phase has been intact for about 3 weeks now and from here, a clear break below 1.2920 would greatly increase the odds for a move towards the 1.2830 low seen earlier this month”.

“Overall, the current mild downward pressure would continue to increase over the next several days as long GBP holds below the strong 1.3050 resistance”.