GBP/USD no change to the neutral stance – UOB

FX Strategists at UOB Group remain neutral on Cable, expecting it to gravitate between 1.2800 and 1.3010 range in the near term.

Key Quotes

“We indicated yesterday that “the undertone for this pair is still positive even though any up-move is expected to face solid resistance 1.2955”. GBP hit a high of 1.2951 before easing off quickly. The positive undertone has eased and the current movement is viewed as part of a consolidation phase. In other words, this pair is expected to trade sideways for today, likely between 1.2865 and 1.2940”.

“There is not much to add as GBP continues to trade sideways. We have held the same view that this pair is trading between 1.2800 and 1.3010 since last Thursday. Volatility seems to be easing and we should be able to narrow the range within these couple of days. At this stage, there is no indication that GBP is ready to stage a ‘breakout’. Looking further ahead, UK election on Thursday is expected to hold the key for the next sustained directional move”.