GBP/USD seen sidelined near term – UOB

FX Strategists at UOB Group now expect Cable to remain within a consolidative theme in the short-term horizon.

Key Quotes

24-hour view: “The rapid pull-back from last Friday 1.2763 peak occurred amidst overbought conditions and waning momentum. In other words, 1.2763 could be a short-term top. From here, barring a move above 1.2763, GBP could edge lower to 1.2685. At this stage, a sustained decline below 1.2685 is not expected”.

Next 1-3 weeks: “GBP touched 1.2763 last Friday (07 Jun), not far from the top of our expected sideway-trading range of 1.2570/1.2770. The advance lacks momentum and this coupled with the pull-back from 1.2763 suggests that GBP is likely to continue to trade sideways. In other words, GBP is still in a ‘sideway-trading’ phase. Looking ahead, the ‘sideway-trading’ phase appears more likely to be resolved by a move above the top of the expected range”.