GBP/USD sticks to the rangebound theme – UOB

FX Strategists at UOB Group sees Cable navigating within 1.2400 and 1.2730 in the next weeks.

Key Quotes

“GBP hit a high of 1.2706 yesterday, holding below the top end of the expected 1.2400/1.2730 consolidation range”.

“While the failure to break above the strong 1.2730 level was not unexpected, the sharp plunge from the high came as a surprise”.

“From here, we continue to expect sideway trading within the range mentioned above but the ‘bearish outside day’ yesterday suggests that the downside is more vulnerable (even though 1.2400 is expected to offer solid support)”.