GBP/USD remains choppy, direction is unclear – UOB

FX Strategists at UOB Group said the outlook for Cable remains mixed, with no clear direction for the time being.

Key Quotes

24-hour view: “Instead of trading sideways (as expected yesterday), GBP rose to a high of 1.3160. While the advance lacks momentum, there is room for GBP to probe the next resistance at 1.3180. At this stage, a clear break above this level is not expected (next resistance is at 1.3210). Support is at 1.3115 but only a break of 1.3090 would indicate that the current mild upward pressure has eased”.

Next 1-3 weeks: “As highlighted in recent updates, the choppy price action over the past several days has resulted in a mixed outlook. Indicators are mostly neutral and the near-term direction is unclear. From a slightly longer-term perspective, the movement since early June appears to be tracing out a declining ‘expanding wedge’ but only a break above 1.3300 would indicate that GBP is ready to move higher. Meanwhile, we expect GBP to continue to trade sideways within a relatively broad 1.3050/1.3250 range”.