According to Lee Sue Ann and Quek Ser Leang, FX Strategists at UOB Group, GBP/USD is now expected to navigate within the 1.2975-1.3100 range in the next weeks.

Key Quotes

24-hour view: “We expected GBP to ‘consolidate within a range of 1.2985/1.3050’ yesterday. Against our expectations, GBP rose to a high of 1.3069. Despite the advance, upward momentum has not improved by much and GBP is unlikely to strengthen much further. For today, GBP is likely to trade sideways between 1.3010 and 1.3075.”

Next 1-3 weeks: “Two days ago (19 Apr, spot at 1.3005), we highlighted that downward momentum is beginning to build but GBP has to break 1.2940 before a sustained decline is likely. We added, ‘a breach of the strong resistance at 1.3075 would indicate that GBP is not ready to head lower’. Yesterday (20 Apr), GBP rebounded to a high of 1.3069. While our ‘strong resistance’ level is not breached, downward pressure has more or less dissipated. From here, GBP is likely to trade sideways for a period of time, expected to be within a range of 1.2975/1.3100.”