FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang now expect GBP/USD to navigate between 1.2470 and 1.2670 in the next weeks.

Key Quotes

24-hour view: “Our expectations for ‘the weakness in GBP to extend’ were incorrect as it soared to a high of 1.2587. The rapid advance appears to be running ahead of itself and GBP is unlikely to strengthen much further. For today, GBP is more likely to trade between 1.2510 and 1.2610.”

Next 1-3 weeks: “One day after dropping sharply to 1.2459, GBP reversed its decline and rebounded strongly. The rebound took out our ‘strong resistance’ at 1.2570 (high of 1.2587) and invalidated our view that GBP is likely to weaken. The sharp but short-lived swings have resulted in a mixed outlook and GBP could trade between 1.2470 and 1.2670 for now.”