GBP/USD: Outlook is now mixed – UOB

Pablo Piovano FXStreet

GBP/USD could now trade between 1.2230 and 1.2460 in the next weeks, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Our expectations for the ‘overbought rally in GBP to extend’ were incorrect as it staged a surprisingly sharp sell-off to a low of 1.2330. The sharp decline has scope to dip below 1.2300 but is not expected to threaten the next support at 1.2230. On the upside, a breach of 1.2405 (minor resistance is at 1.2375) would indicate that the current downward pressure has eased.”

Next 1-3 weeks: “After GBP surged to a high of 1.2498, we highlighted yesterday that there is room for GBP to advance further to 1.2600. We did not expect the rapid and sharp turnaround as GBP plummeted to a low of 1.2330 during NY session. The volatile price actions have resulted in a mixed outlook and GBP could trade between 1.2230 and 1.2460 for now.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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