GBP/USD seen trading within the 1.2900-1.3120 range – UOB

Cable remains neutral and is seen keeping the 1.2900-1.3120 range for the time being, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “The sudden sharp drop in GBP and the subsequent strong bounce from a low of 1.2918 came as a surprise. The volatile swings have resulted in a mixed outlook. For today, GBP could continue to trade in a choppy manner but yesterday’s broad range of 1.2918/1.3068 is likely enough to contain the price actions.”

Next 1-3 weeks: “We highlighted two days ago (27 Oct, spot at 1.3025) that GBP ‘is likely to consolidate and trade between 1.2900 and 1.3120 for now’. GBP dropped to a low of 1.2918 yesterday (28 Oct) before rebounding quickly. Downward momentum has improved a tad and it is premature to expect a clear break of the solid support at 1.2900. In other words, we continue to expect GBP to trade between 1.2900 and 1.3120 for now.”