GBP/USD rangebound between 1.2350 and 1.2670 – UOB

According to FX Strategists at UOB Group, Cable should stick to the consolidative theme between 1.2350 and 1.2670 in the next weeks.

Key Quotes

“The sudden increase in volatility was unexpected as GBP plunged to a low of 1.2347 before surging by 200 pips to an overnight high of 1.2547. The strong rally from the low has resulted in a positive undertone but at this stage, any further up-move is not expected to move beyond 1.2580 (the overnight high is already a rather strong resistance). Support is at 1.2465 but only a move below 1.2430 would indicate that the immediate upward pressure has eased”.

“GBP moved below the strong 1.2400 support yesterday but surged after hitting a low of 1.2347. The wild swing reinforces our current neutral view for this pair and further choppy trading is expected in the coming days albeit likely at a broader 1.2350/1.2670 range”.