GBP/USD stays sidelined so far – UOB

Cable’s near term stance keeps pointing to a continuation of the rangebound theme, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “GBP registered a range of 1.3097/1.3151 yesterday, narrower than our expected 1.3080/1.3150 consolidation range. The undertone has improved somewhat and there is room for GBP to edge above the 1.3150 resistance but lackluster momentum suggests that the next resistance at 1.3180 is unlikely to be challenged. Support is at 1.3100 followed by the relatively strong level of 1.3080”.

Next 1-3 weeks: “There is not much to add as GBP traded within a tight 49 pips range last Friday, the narrowest 1-day range in two months. The quiet consolidation offers no fresh clue and we continue to hold a neutral stance and expect GBP to trade sideways from here, likely within a 1.3010/1.3220 range”.