GBP/USD sticks to the rangebound theme near term – UOB

Cable is still seen trading within the 1.3640-1.3850 range for the time being, according FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘momentum indicators are turning ‘neutral’’ and we expected GBP to trade sideways within a 1.3730/1.3785 range. However, GBP traded between 1.3743 and 1.3807 before closing unchanged at 1.3756. Momentum indicators still appear to be ‘neutral’ and we continue to expect GBP to trade sideways, likely between 1.3720 and 1.3780.”

Next 1-3 weeks: “We have expected GBP to trade between 1.3640 and 1.3850 since last Tuesday (24 Aug, spot at 1.3720). In our latest narrative from Monday (30 Aug, spot at 1.3760), we highlighted that ‘while upward momentum is beginning to build, we continue to expect GBP to trade between 1.3640 and 1.3850 for now’. Since then, GBP has not been able to make much headway on the upside and the build-up in momentum appears to have fizzled out. In other words, GBP could continue to trade between 1.3640 and 1.3850 for now.”