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

Key Quotes

24-hour view: “Our expectations for GBP to ‘trade between 1.2225 and 1.2325’ yesterday were incorrect as it plunged briefly to 1.2163, soared to 1.2314 before dropping back down quickly to end the day slightly lower at 1.2265 (-0.11%). The sharp swings have resulted in a mixed outlook and further choppy price actions are not ruled out, likely within a range of 1.2200/1.2310.”

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. There is no change in our view and we continue to expect GBP to trade between 1.2040 and 1.2400.”