UOB discusses GBP/USD technical outlook and adopts a neutral bias, expecting the pair to trade within a broad 1.2700/1.3000 range in the near-term.
"We indicated in our last update on 23 Oct (spot at 1.2875) that “GBP could ill afford to dither below 1.3000 or the risk of a short-term top would increase rapidly”. Since then, GBP traded sideways to slightly lower and upward pressure has dissipated. The positive phase that started earlier this month (see annotations in chart below) has likely made a short-term top at 1.3012 last week," UOB notes.
"Looking ahead, further GBP strength is not ruled out even though the 1.3000/10 level is acting as a ‘high-water mark’ and would be a tough level to crack. Meanwhile, GBP is expected to trade sideways, likely within a broad 1.2700/1.3000 range," UOB adds.