GBP/USD seen navigating in the 1.2750-1.3000 range – UOB

Cable’s stance remains consolidative and the pair is likely to trade between 1.2750 and 1.3000 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we noted that ‘the underlying tone still appears to be firm and the bias from here is tilted to the upside’. However, we held the view that ‘the odds for a break of 1.2930 are not high’. The subsequent GBP strength exceeded our expectation as it soared to a high of 1.2945. The strong and swift advance appears to be running ahead of itself. That said, there is no sign of weakness just yet and GBP could test the next resistance at 1.2960 before a more sustained pull-back can be expected. For today, 1.3000 is not expected to come under threat. Support is at 1.2875 followed by 1.2845.”

Next 1-3 weeks: “There is not much to add our latest update from Tuesday (29 Sep, spot at 1.2870). As highlighted, GBP is in a consolidation phase and is expected to trade between 1.2750 and 1.3000. While the shorter-term underlying tone has improved somewhat, it is premature to expect a sustained rise above 1.3000.”