In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, GBP/USD is expected to navigate within the 1.1680-1.1940 range in the next few weeks.

Key Quotes

24-hour view: “We highlighted yesterday that GBP ‘could retest the 1.1780 level before a more sustained rebound is likely’. However, GBP did not test 1.1780 as it rebounded from 1.1815 (high has been 1.1905). Despite the rebound, upward momentum has not improved much. That said, GBP could edge higher but any further advance is unlikely to break the major resistance at 1.1940. On the downside, a break of 1.1830 (minor support is at 1.1860) would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (22 Nov, spot at 1.1825). As highlighted, GBP appears to have moved into a consolidation phase and is likely to trade between 1.1680 and 1.1940 for the time being.”