GBP/USD: Further weakness looks out of favour – UOB

In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, GBP/USD is now expected to navigate within the 1.1720-1.1930 range in the near term.

Key Quotes

24-hour view: “We highlighted yesterday that GBP ‘is unlikely to advance much further’ and we expected it to ‘trade sideways within a range of 1.1760/1.1885’. GBP subsequently traded within a narrower range than expected (1.1757/1.1836). Further sideway-trading appears likely, expected to be within a range of 1.1760/1.1845.”

Next 1-3 weeks: “There is no change in our view from yesterday (24 Aug, spot at 1.1830). As highlighted, GBP is unlikely to weaken further. GBP is more likely to consolidate and trade between 1.1720 and 1.1930.”