GBP/USD now moved into a consolidative phase – UOB

In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, GBP/USD is now seen trading within the 1.2330-1.2505 range in the next few weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘there is room for GBP to strengthen further but a sustained rise above 1.2455 is unlikely’. We added, ‘any advance is likely part of a higher range of 1.2360/1.2455’. In early London trade, GBP dropped to 1.2350 and then rebounded to 1.2445. Upward momentum is beginning to build and we expect GBP to trade with an upward bias today. However, a break of the major resistance at 1.2505 is unlikely (minor resistance is at 1.2485). Support is at 1.2415, followed by 1.2385.”

Next 1-3 weeks: “Our update from yesterday (31 May, spot at 1.2415) is still valid. As highlighted, the recent GBP weakness has stabilized. While upward momentum has improved somewhat, it is premature to expect a reversal. For now, GBP is likely to trade in a range between 1.2330 and 1.2505.”