GBP/USD faces strong resistance in the 1.30 area – UOB

Cable is expected to trade within a sideline theme so far although occasional bullish attempts are not ruled out, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Instead of “trading sideways”, GBP slipped to 1.2876 during NY hours before ending the day on a soft note at 1.2880 (-0.45%). Downward momentum has ticked up, albeit not by much. From here, barring a move above 1.2925 (minor resistance at 1.2905), GBP is expected to drift lower to 1.2845. The next support at 1.2800 is not expected to come into the picture”.

Next 1-3 weeks: “Our view from one week ago (29 Oct, spot at 1.2855) wherein GBP is “expected to trade sideways” still stands. As highlighted, further GBP strength is not ruled out but the recent top around 1.3000/1.3010 is ‘high-water mark’ and would be a tough level to crack. Meanwhile, GBP could trade sideways within a 1.2800/1.3000 range for a while more”.