GBP/USD faces further consolidation near term – UOB

In the opinion of UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang, GBP/USD is now expected to navigate within the 1.2330-1.2520 range in the next few weeks.

Key Quotes

24-hour view: “Our view for GBP to trade in a 1.2395/1.2470 range yesterday was incorrect as it dropped sharply to 1.2346 before rebounding. The rebound in oversold conditions suggests GBP is unlikely to weaken further. Today, GBP is more likely to consolidate, expected to be between 1.2355 and 1.2450.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (10 Apr, spot at 1.2425). As highlighted, GBP is likely to consolidate between 1.2330 and 1.2520 for the time being.”