FX Strategists at UOB Group noted the pair’s outlook remains mixed in the near term.
Key Quotes
24-hour view: “The strong rebound in GBP last Friday appears to be running ahead of itself. That said, there is scope for the recovery to extend higher even though a clear break above 1.3210 would come as a surprise (1.3180 is already a relatively strong resistance). Support is at 1.3110 followed by 1.3080″.
Next 1-3 weeks: “While GBP broke the major 1.3040/50 support zone last week, the decline was short-lived as it staged a robust rebound after touching a low of 1.2958 last Thursday (19 Jul). The choppy price action has resulted in a mixed outlook and we continue to hold a neutral stance for now and expect GBP to continue to trade in a relatively volatile manner, likely within a broad 1.3050/1.3250 range”.
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