GBP/USD clings to the neutral stance – UOB

FX Strategists at UOB Group remain neutral on Cable, expecting it to keep the trade between 1.2220/1.2450 in the next weeks.

Key Quotes

“We turned neutral yesterday and were of the view that GBP has moved into a 1.2220/1.2450 consolidation range”.

“While the overnight high of 1.2432 did not threaten the 1.2450 resistance, the rapid rise yesterday has resulted in a positive undertone (especially on a short-term basis)”.

“From here, a move above 1.2450 is not ruled out but 1.2500 and 1.2550 are both very strong resistances and these levels are unlikely to yield so easily. All said, the current positive undertone would ease only upon a move back below 1.2270 (minor support at 1.2330)”.