GBP/USD further rangebound lies ahead – UOB

According to strategists at UOB Group, GBP/USD keeps the neutral outlook and is expected to trade within 1.2250 and 1.2550 in the next weeks.

Key Quotes

“In line with expectation, the initial recovery in GBP held below 1.2460 (high of 1.2440). However, the subsequent decline from the high did not reach the target indicated at 1.2350 (low of 1.2362)”.

“The undertone remains weak and a move below 1.2350 would not be surprising but the next support at 1.2300 is unlikely to yield so easily. The 1.2440 high is acting as a resistance now ahead of the stronger level near 1.2500”.

“We shifted to a neutral stance on GBP yesterday and there is no change to view. This is expected to trade within a broad 1.2250/1.2550 range for now”.