GBP/USD is seen navigating the 1.2040-1.2400 range in the next weeks, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.
24-hour view: “We highlighted yesterday ‘the current price actions appear to be part of a consolidation phase’ and we expected GBP to ‘trade sideways within a range of 1.2150/1.2300’. Our view for sideway-trading was not wrong even though GBP traded within a much narrower range than expected (1.2201/1.2277). Further sideway-trading appears likely, expected to be within a range of 1.2190/1.2300.”
Next 1-3 weeks: “We continue to hold the same view as from yesterday (20 Jun, spot 1.2225). As highlighted, the recent sharp but short-lived swings have resulted in a mixed outlook and GBP could continue to trade in a choppy manner, likely between 1.2040 and 1.2400.”