GBP/USD outlook shifted to neutral – UOB

In view of Strategists at UOB Group, Cable’s outlook has now shifted to neutral from bullish, pointing to a consolidative them between 1.2300 and 1.2600.

Key Quotes

“We underestimated the downward momentum as GBP easily took out successive strong supports and dropped sharply to a low of 1.2380. However, the downward pressure appears to have eased somewhat with the subsequent strong rebound from the low. The current movement is viewed as the early stages of a consolidation phase even though the immediate bias is tilted to the downside”.

“The break below 1.2400 yesterday indicates that our recent expectation for GBP to extend its gains to 1.2770 is wrong. The outlook for this pair is viewed as neutral now and we expect to see a period of sideway trading, likely within a broad 1.2300/1.2600 range”.

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