GBP/USD: No change to the consolidation theme – UOB

Cable is expected to extend the side-lined mood within the 1.3450-1.3645 range for the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘despite the decline, downward momentum has barely improved and GBP is unlikely to weaken much further’ and we expected GBP to ‘trade between 1.3490 and 1.3570’. Our view was not wrong as GBP rose to 1.3567, dropped to 1.3488 before rebounding quickly to end the day little changed at 1.3542 (+0.07%). The relatively choppy price actions have resulted in a mixed outlook. Further choppy trading would not be surprising, likely within a range of 1.3500/1.3590.”

Next 1-3 weeks: “Our view from last Friday (11 Feb, spot at 1.3550) still stands. As highlighted, GBP is likely trade between 1.3450 and 1.3645 for now.”