GBP/USD expected to rangebound between 1.23 and 1.21 – UOB

FX Strategists at UOB Group see Cable sticking to the consolidative pattern in the near term, likely between 1.21/1.23.

Key Quotes

“While we indicated yesterday that “GBP is trying to form a base”, the sharp bounce that easily took out the trailing stop-loss for our bearish view at 1.2230 came as a surprise (overnight high of 1.2251)”.

“The bearish phase that started earlier this month has ended and the revised target of 1.2100 was not met (low of 1.2133 last Friday)”.

“The current movement is viewed as the early stages of a consolidation phase and GBP is expected to trade within a 1.2100/1.2300 range from here”.