GBP/USD back to neutral outlook near term – UOB

FX Strategists at UOB Group have shifted their outlook on Cable to neutral from bullish, now pointing to a rangebound pattern between 1.2480/1.2750 for the next weeks.

Key Quotes

“The anticipated pull-back in GBP was more resilient than expected as the break of 1.2625/30 led to a rapid drop to an overnight low of 1.2570. Despite the rebound from the low, the undertone is still weak and barring a move above 1.2670, a retest of the overnight low seems likely from here”.

“The bullish phase that started last Friday ended with the breach of 1.2630 yesterday (we advocated taking partial profit at 1.2770). The current movement is viewed as the start of a neutral consolidation phase, likely within a broad 1.2480/1.2750 range”.