GBP/USD back to neutral stance – UOB

The research team at UOB Group has shifted its outlook for GBP/USD to neutral, likely to trade between 1.2980-1.3210 in the next weeks.

Key Quotes

“The anticipated weakness in GBP exceeded our expectation by easily taking out the strong 1.3100 support to reach a low of 1.3065. The subsequent strong rebound from the low suggests that this pair is trying to form a short-term base for a stronger recovery”

“The drop back below 1.3100 yesterday indicates that our recent expectation for GBP to extend higher to 1.3370 was wrong. From here, the outlook for GBP is deemed as neutral and we expect to see broad range trading, likely within a 1.2980/1.3210 range”.