GBP/USD outlook shifted to neutral – UOB

GBP/USD’s perspective has shifted to neutral from bullish, according to the research team at UOB Group.

Key Quotes

“The sharp and abrupt drop in GBP which took out the strong 1.3150 support suggests that a short-term top is in place. The pull-back appears incomplete but at this stage, any further decline is expected to find solid support at 1.3020”.

“We just adopted a neutral stance yesterday and there is no change to the view. GBP has likely made an interim low and the current up-move is viewed as a corrective recovery which has scope to extend higher to 1.3535. At this stage, a sustained move beyond this level is not expected. Support is at 1.3050 followed by 1.2950”.