Cable is expected to navigate the 1.2040-1.2400 range in the next weeks, according to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that GBP ‘is likely to trade sideways within a range of 1.2190/1.2300’. However, GBP subsequently rose to 1.2325 before easing off. Despite the advance, upward momentum has barely improved and GBP is unlikely to advance further. For today, GBP is more likely to trade between 1.2225 and 1.2325.”

Next 1-3 weeks: “On Monday (20 Jun, spot 1.2225), we highlighted that the outlook is mixed and GBP could continue to trade in a choppy manner, likely between 1.2040 and 1.2400. Despite the subsequent quieter price actions, we continue to expect GBP to trade between 1.2040 and 1.2400.”