GBP/USD outlook now neutral – UOB
FX Strategists at UOB Group shifted their outlook on Cable to neutral from bullish in the near term.
24-hour view: “GBP slumped to a low of 1.3370 before rebounding quickly. The immediate pressure remains on the downside and another down leg towards 1.3350 seems likely. Only a move back above 1.3480 would indicate that a short-term low is in place (1.3455 is already quite a strong resistance)”.
Next 1-3 weeks: “The drop back below the 1.3390 ‘stop-loss’ yesterday (low of 1.3370) indicates that the bullish phase that started late last week has ended. The current movement is viewed as the early stages of a consolidation phase and GBP is expected to trade sideways for now, even though the immediate bias is for a probe lower towards the bottom of the expected 1.3320/1.3510 consolidation range”.