GBP/USD keeps the rangebound unchanged – UOB

FX Strategists at UOB Group keep their sideline theme intact around Cable in the near term.

Key Quotes

“The strong up-move in GBP that touched a high of 1.2498 was unexpected. While the up-move appears to be running ahead of itself, there is room for another leg higher towards 1.2520. At this stage, a sustained move above this level is not expected. On the downside, yesterday’s low of 1.2423 is likely strong enough to hold any intraday pull-back (minor support is at 1.2445)”.

“Despite the rapid recovery yesterday, the current movement is still viewed as part of a broad 1.2350/1.2580 consolidation range (roughly within the past fortnight range). At this stage, there is no pre-indication that GBP is ready to move out of this range”.