GBP/USD still seen within the 1.2300/1.2610 range – UOB

Cable is expected to keep navigating within the broad 1.2300/1.2610 range in the next weeks, reported FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected GBP to consolidate and trade within a 1.2440/1.2530 range yesterday. However, GBP dipped to 1.2417 before recovering slightly. The underlying tone has weakened and from here, barring a move above 1.2500 (minor resistance is at 1.2470), GBP is expected to edge below 1.2400. At this stage, the next support at 1.2360 is unlikely to come into the picture.”

Next 1-3 weeks: “As highlighted, the 1.2648 high posted on 14 Apr is deemed as a short-term top. For now, it is too early to expect a sustained decline in GBP. While GBP could move lower from here, any weakness is viewed as part of 1.2300/1.2610 range. In other words, GBP is unlikely to move clearly below 1.2300.”