GBP/USD points to further consolidation – UOB

Cable stays neutral and has moved into a consolidation phase, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Instead of ‘probing’ the 1.3330 support (as expected yesterday), GBP traded mostly sideways and ended the day largely unchanged (closed at 1.3372, -0.07%). The quiet price action has resulted in a mixed outlook and further range trading seems likely. Expected range for today; 1.3330/1.3420”.

Next 1-3 weeks: “The recent mild upward pressure has eased as GBP dipped below the 1.3350 ‘key support’ yesterday (low of 1.3345). However, there is no change to the current neutral outlook but GBP is more likely to trade sideways for now, expected to be between 1.3250 and 1.3470 (we previously see scope for a stronger rebound to 1.3520)”.