GBP/USD extends its rangebound theme – UOB

GBP/USD remains poised to extend its current sideline theme between 1.2980 and 1.3210 in the next 1-3 weeks.

Key Quotes

“While the initial dip in GBP held above 1.3050 as expected (low of 1.3060), the anticipated recovery did not reach the 1.3140 target (high of 1.3120). The subsequent rapid pullback from the top has resulted in a mixed outlook and this pair is expected to trade sideways at these lower levels, likely between 1.3030 and 1.3130”.

“We shifted to a neutral stance for GBP yesterday and there is no change to the view. The outlook for the next couple of weeks appears to be neutral and we expect GBP to trade sideways, likely within a broad 1.2980/1.3210 range. That said, the immediate bias is on the downside and the odds for a move to 1.2980 first is higher than a move to 1.3210”.