GBP/USD: Good support at 1.19, top at 1.26 – UBS

Sterling has underperformed in recent sessions. Economists at UBS analyze GBP outlook. 

Range trading against the USD

In a relative space, the UK economy does not look exceptionally weak, moreover, interest rates are high, which should give some support to the pairing at these levels. With this yield-growth mix in mind, we expect GBP/USD to be more range-bound. 

To the downside, we see good support at 1.19, while to the upside we look for a top at 1.26.

See: GBP/USD could consolidate back above 1.27 by year-end – ANZ