GBP/USD still seen within 1.2040-1.2255 – UOB

GBP/USD is predicted to maintain the 1.2040-1.2255 range in the next few weeks, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘downward momentum is building and GBP could weaken to 1.2100’. GBP dropped briefly to 1.2100 during NY session before rebounding. While downward momentum has not improved by much, there is room for GBP to edge lower to 1.2085. For today, the major support at 1.2040 is not expected to come into the picture. On the upside, a break of 1.2200 (minor resistance is at 1.2170) would indicate that the current downward pressure has eased.”

Next 1-3 weeks: “There is no change in our view from yesterday (03 Aug, spot at 1.2160). As highlighted, the recent GBP strength has ended. GBP has appears to have moved into a consolidation phase and is likely to trade within a range of 1.2040/1.2255 for now.”