In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, GBP/USD is still seen within the 1.2165-1.2380 range in the short term.

Key Quotes

24-hour view: “We highlighted that GBP ‘could continue to range trade, the slightly firmed underlying tone suggests a higher range of 1.2245/1.2335’. GBP subsequently traded between 1.2239 and 1.2331 before closing largely unchanged at 1.2265 (-0.07%). Further range-trading would not be surprising, likely within a range of 1.2235/1.2330.”

Next 1-3 weeks: “We have held the same view since early last week where the outlook for GBP is mixed and we expect GBP to range-trade. There is no change in our view for now even though a 1.2165/1.2380 range (vs 1.2130/1.2380 previously) is likely enough to contain the price actions in GBP, at least within these few days.”