GBP/USD keeps the neutral stance near term – UOB

GBP/USD keeps its neutral perspective in the next 1-3 weeks, according to the research team at UOB Group.

Key Quotes

“The anticipated extension higher in GBP did not quite reach the target indicated at 1.3380 (high of 1.3372)”.

“The subsequent rapid pull-back from the top suggests that the recent upward pressure has eased. The current movement is viewed as part of a consolidation and sideway trading seems likely from here”.

“The undertone for GBP is still positive and the current recovery has room to extend higher to test the strong 1.3420 resistance. Based on the current momentum, a sustained move above this level seems unlikely. The next resistance is at 1.3480, the high in mid-July. In the next few days, GBP is expected to stay underpinned with solid support at 1.3200”.