GBP/USD neutral, within a 1.2350/1.2580 range – UOB

According to FX Strategists at UOB Group, Cable stays neutral, likely between 1.2350 and 1.2580.

Key Quotes

“We underestimated GBP weakness as the target indicated at 1.2435 was easily exceeded with a low of 1.2419. The lack of a significant rebound suggests that the immediate pressure is still on the downside but last week’s low near 1.2380 is likely out of reach (minor support is at 1.2405)”.

“Our recent expectation for a stronger recovery was proven wrong as GBP dropped below the key short-term support at 1.2435 (overnight low of 1.2419). This pair has likely moved into a consolidation phase and is expected to trade sideways in the coming days, likely within a 1.2350/1.2580 range (roughly within the past fortnight range)”.