GBP/USD neutral near term, between 1.2800 and 1.2975 – UOB

Cable is expected to gravitate in a 1.2800/1.2975 range in the next weeks, suggested FX Sytrategists at UOB Group.

Key Quotes

“We indicated yesterday that “further weakness is expected but a move below major 1.2800 support is not expected”. In line with expectation, GBP touched a low of 1.2812 before staging a sharp and swift rebound. The recover appears to have scope to extend higher but 1.2930 is a strong resistance and a clear break above this level is not expected (next resistance is at 1.2975). On the downside, the nearest support is at 1.2865 followed by 1.2835. The 1.2812 low is unlikely to come into the picture for today”.

“In line with expectation, GBP ‘probed’ lower but the major 1.2800 support was unthreatened (low of 1.2812). The subsequent sharp bounce from the low reinforces our current neutral view for GBP and we continue to expect this pair to trade sideways within a 1.2800/1.2975 range”.