GBP/USD sticks to the neutral stance – UOB

FX Strategists at UOB Group expects Cable to regain upside traction on a breakout of the key 1.3000 handle.

Key Quotes

“The major 1.3000 resistance was unthreatened as GBP pulled back sharply from a high of 1.2990. A short-term top is likely in place and the current movement is viewed as part of a consolidation phase. In other words, GBP is expected to trade sideways for today, likely at a lower range of 1.2910/1.2970”.

“As indicated yesterday, despite the overall positive undertone, GBP has to close above 1.3000 to indicate that it has moved into a bullish phase again. While the odds are not high, this scenario is not ruled out as long as the strong support at 1.2880 can hold for the next 1 to 2 days”.