GBP/USD keeps the consolidative theme intact – UOB Group

FX Strategists at UOB Group expect Cable to extend its sideline pattern in the near term, likely between 1.2800 and 1.3010.

Key Quotes

“While GBP has strengthened in the past few days, we view the price action as part of a broader consolidation phase and not the start of a sustained up-move”.

“Even if there is a move above the top of the expected 1.2800/1.3010 consolidation range, there is still a major resistance near 1.3050 (last month’s high)”.

“That said, upward momentum has improved and would continue to improve unless there is a drop back below 1.2880. Note that an out of consensus UK election results could easily swing this pair one way or the other”.