UOB Research discusses GBP/USD technical outlook and expects a sideways trading in the near-term.
"Short-term top in place, GBP is likely to trade sideways to slightly lower for now. Last Friday (20 Sep) high of 1.2582 is deemed as a short-term top. While GBP is expected to trade below the short-term top for the next 1 to 2 weeks, any weakness is viewed as part of consolidation phase and it is too soon to expect a significant pull-back," UOB notes.
"To look at it another way, GBP is expected to trade sideways to slightly lower for now, expected to be within a 1.2300/1.2520 range," UOB adds.