GBP/USD still seen rangebound – UOB

The persistent consolidation around Cable is expected to continue for the time being, noted FX Strategists at UOB  Group.

Key Quotes

24-hour view: “GBP traded between 1.2438 and 1.2518 yesterday, close to our expected sideway trading range of 1.2440/1.2520. That said, GBP closed on a soft note in NY (1.2452, -0.23%) and the immediate bias from here is tilted to the downside. A test of Tuesday’s 1.2418 low would not be surprising but a break of the month-to-date low of 1.2382 would come as a surprise (there is another support at 1.2400). On the upside, resistance is at 1.2480 followed by 1.2500. Yesterday’s 1.2518 top is not expected to come into the picture”.

Next 1-3 weeks: “After closing lower for 3 straights days, GBP rebounded strongly and hit an overnight high of 1.2522. The price action was not exactly surprising as we have held the same view since last Friday (19 Jul, spot at 1.2540) wherein we expect GBP to “trade sideways”. The underlying tone has firmed somewhat but for now, we continue to expect GBP to trade within a 1.2400/1.2580 range”.