GBP/USD stance remains neutral, attention to 1.3380 – UOB

In view of FX Strategists at UOB Group, Cable keeps the neutral perspective near term, while a breakout of the 1.3380 area should shift the view to bullish.

Key Quotes

24-hour view: “We highlighted yesterday that there is scope for GBP to extend higher to 1.3335/40. However, GBP only managed to touch a high of 1.3321 before dropping sharply. A short-term top is likely in place and the current pullback appears incomplete and extension lower towards 1.3205/10 would not be surprising (next support at 1.3170). The 1.3321 high is expected to be strong enough to cap any intraday gains (minor resistance is at 1.3290)”.

Next 1-3 weeks: “As long as key support at 1.3170 is intact, the immediate bias is tilted to the upside but 1.3335 and 1.3380 are solid resistance levels”.