GBP/USD deeper pullback appears unlikely – UOB

FX Strategists at UOB Group stay neutral on Cable in the near term, expecting to gravitate between 1.2400 and 1.2580.

Key Quotes

“GBP had a rather choppy day yesterday, swinging between 1.2420 and 1.2509. The whippy trading has resulted in a mixed outlook and while a move out the 1.2420/1.2509 range is not ruled out, a move below the major 1.2400 support or the major 1.2530 resistance seems unlikely”.

“GBP took a peek above 1.2500 yesterday but got sold off quickly from a high of 1.2509. While lacking in momentum, the pull-back appears to have scope to move below the bottom of the expected 1.2400/1.2580 consolidation range but a sustained down-move is unlikely (next level at 1.2350 is a major support and is not expected to yield so easily). All in, the outlook is unclear and the recent whippy trading could persist for a while more”.