GBP/USD bearish stance threatened – UOB

FX Strategists at UOB Group noted Cable’s near term bearish outlook should be neutralized on a move above 1.2721.

Key Quotes

“GBP traded in a surprisingly tight 37 pips range yesterday, the narrowest 1-day range in more than 2 months”.

“At this stage, we view the consolidation as a prelude for another push lower but as indicated, 1.2580/85 is a major support and those who are shorts should look to exit half of their position”.

“A move above the stop-loss at 1.2720 would indicate that the bearish phase that started more than a week ago has ended”.