GBP/USD outlook shifted to neutral – UOB

In view of FX strategists at UOB Group, Cable’s outlook has now shifted to neutral from bearish, expecting to trade within the 1.2220/1.2450 range in the next weeks.

Key Quotes

“GBP rebounded strongly without retesting the major 1.2200 support (low of 1.2220). Upward momentum has picked up strongly and the immediate bias is tilted to the upside even though any up-move is expected to struggle near last Friday’s peak of 1.2385/90. Support is at 1.2270 and yesterday’s low of 1.2220 is not expected to come into the picture for today”.

“The bearish phase that started in mid-December has ended with the move above 1.2340 yesterday (high of 1.2354). The current movement is likely the early stages of a consolidation phase and GBP is expected to trade in a broad 1.2220/1.2450 range for now”.