GBP/USD further consolidation lies ahead – UOB

In view of FX Strategists at UOB Group, Cable could face more consolidation in the near-term, likely between 1.23 and 1.26.

Key Quotes

“The strong support indicated at 1.2355 yesterday held as GBP rebounded quickly after touching a low of 1.2360. While lacking in momentum, the rebound appears to have room to extend higher but any up-move is expected to face stiff resistance at 1.2485 (followed by 1.2510/15 high seen earlier this week)”.

“As highlighted yesterday, despite the strong rebound from the Monday’s low of 1.2313, it is too early to expect to a sustained up-move. The strong pull-back yesterday reinforces our current neutral view and we continue to expect GBP to trade choppily, likely within a broad 1.2300/1.2600 range”.