FX Strategists at UOB Group noted GBP/USD is expected to trade within the 1.3560-1.3725 range in the next weeks.

Key Quotes

24-hour view: “We expected GBP to ‘trade sideways between 1.3650 and 1.3715’ yesterday. However, GBP drifted to a low of 1.3639 before settling on a soft note at 1.3644 (-0.30%). Despite the decline, downward momentum has barely improved and GBP is unlikely to weaken much further. For today, GBP is more likely to trade sideways within a range of 1.3630/1.3690.”

Next 1-3 weeks: “While GBP only dipped one pip below our ‘strong support’ level at 1.3640 yesterday (low of 1.3639), upward momentum has more or less dissipated. In other words, the GBP strength that started more than a week ago (see annotations in the chart below) has run its course. The current movement is viewed as part of a consolidation phase and GBP is likely to trade between 1.3560 and 1.3725 for now.”