In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, GBP/USD should navigate within the 1.2040-1.2400 range in the next weeks.

Key Quotes

24-hour view: “We expected ‘further GBP strength’ last Friday. However, GBP dropped to a low of 1.2174 before rebounding. The current price actions appear to be part of a consolidation phase and GBP is likely to trade sideways for today, expected to be within a range of 1.2150/1.2300.”

Next 1-3 weeks: “Last Friday (17 Jun, spot 1.2355), we highlighted that the recent GBP weakness has ended and we were of the view that strong shorter-term upward momentum could lead to an advance to 1.2460. We did not expect the subsequent sharp pullback to a low of 1.2174. The sharp but short-lived swings have resulted in a mixed outlook. GBP could continue to trade in a choppy manner, likely between 1.2040 and 1.2400.”