GBP/USD clings to the near-term consolidative phase – UOB

GBP/USD should remain side-lined between 1.2330 and 1.2520 for the time being, according to Economist Lee Sue Ann and Market Strategist Quek Ser Leang at UOB Group.

Key Quotes

 24-hour view: “Yesterday, we noted that ‘the rebound in oversold conditions suggests GBP is unlikely to weaken further’ and we expected GBP to consolidate and trade between 1.2355 and 1.2450. GBP subsequently traded in a narrower range than expected (1.2383/1.2452). The price actions lack directions and we expect GBP to trade in a range today, likely between 1.2390 and 1.2450.”

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