GBP/USD interim target at 1.4145 – UOB

Cable sticks to the neutral stance in the near term, while still expects a re-test of 1.4145, noted FX Strategists at UOB.

Key Quotes

24-hour view: “GBP traded between 1.3983/1.4066 yesterday, narrower than our expected sideway trading range of 1.3980/1.4070. While the undertone has weakened somewhat, it is too soon to expect a sustained pullback. GBP is more likely to continue to consolidate albeit likely at lower range of 1.3960/1.4040”.

Next 1-3 weeks: “The abrupt and sharp rally in GBP yesterday was clearly unexpected. News of a deal on Brexit sent GBP soaring to a one-month high of

1.4088. Upward pressure has picked up considerably and the risk remains on the upside. However, despite the strong up-move, we are not convinced that the current price action is the start of a bullish phase. That said, the rally has scope to extend further towards the mid-February high of 1.4145 but a sustained break above this level seems unlikely. Overall, GBP is expected to stay supported as long as the key support at 1.3930 is intact”.