GBP/USD: Weak Phase Has Ended; Consolidation Phase Started – UOB

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GBP/USD has shown some volatility this week. What is the technical outlook for GBP/USD?

Here is their view, courtesy of eFXdata:

UOB Research discusses GBP/USD technical outlook and flags a scope for a consolidation phase.

“After dropping sharply for a few days in a row, the sudden and sharp bounce in GBP yesterday came as a surprise. The rebound edge above our 1.2400 ‘strong resistance’ level (high of 1.2402) and the weak phase that started last week is deemed to have run its course,” UOB notes.

The current movement in GBP is likely the early stages of a consolidation phase. So, GBP is expected to trade sideways, likely between 1.2280 and 1.2480 in the very near-term,” UOB adds.

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.

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