In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, the outlook for GBP/USD remains mixed for the time being.
24-hour view: “We highlighted yesterday that ‘the sharp swings have resulted in a mixed outlook and further choppy price actions are not ruled out’ and we expected GBP to ‘trade within a range of 1.2200/1.2310’. Our view for choppy trading was not wrong as GBP plunged to 1.2171, snapped up to 1.2294 before dropping back down to end the day little changed at 1.2262 (-0.03%). The outlook remains mixed and GBP could continue to trade in a choppy manner. Expected range for today, 1.2190/1.2305.”
Next 1-3 weeks: “We have held the same view since Monday (20 Jun, spot 1.2225) where the outlook is mixed and GBP could continue to trade in a choppy manner, likely between 1.2040 and 1.2400. Our view was not wrong as GBP traded in a choppy manner the last few days. The price actions offer no fresh clues and the outlook remains mixed. Only a break out of the expected range of 1.2130/1.2380 (narrowed from 1.2040/1.2400) would suggest a directional move is likely.”