GBP/USD looks consolidative near term – UOB

FX Strategists at UOB Group suggest GBP/USD could now navigate within the 1.3100-1.3300 range in the next weeks.

Key Quotes

24-hour view: “We expected GBP to ‘trade sideways within a range of 1.3165/1.3235’ last Friday. Our view for sideway-trading was not wrong even though GBP traded within a narrower range than expected (1.3160/1.3223). From here, the underlying tone appears to have softened and GBP is likely to edge lower to 1.3135. The major support at 1.3100 is unlikely to come under threat. Resistance is at 1.3195 followed by 1.3220.”

Next 1-3 weeks: “Our update from last Friday (25 Mar, spot at 1.3195) still stands. As highlighted, GBP appears to have moved into a consolidation phase and is likely to trade between 1.3100 and 1.3300 for now.”