GBP/USD is now seen navigating within the 1.2040-1.2260 range in the short-term horizon, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “While we expected GBP to strengthen yesterday, we were of the view that ‘a sustained rise above the major resistance at 1.2200 is unlikely’. In NY trade, GBP popped to a high of 1.2269, dropped quickly from the high and traded choppily before ending the day at 1.2176 (+0.29%). The price actions are likely part of a broad consolidation range and we expect GBP to trade between 1.2110 and 1.2220 today.”

Next 1-3 weeks: “Yesterday (14 Feb, spot at 1.2140), we highlighted that instead of heading lower, GBP is more likely to consolidate and trade between 1.2040 and 1.2260. GBP popped briefly to 1.2269 in NY trade before closing at 1.2176 (+0.29%). There is no change in our view and we continue to expect GBP to trade between 1.2040 and 1.2260.”