GBP/USD is seen navigating within the 1.2345-1.2510 range in the short term, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “Our expectations for GBP to consolidate in a range of 1.2400/1.2475 last Friday were incorrect as it dropped to 1.2368 and then rebounded to end the day unchanged at 1.2445. While there is room for GBP to edge upwards, we view any advance as a higher trading range of 1.2405/1.2475. In other words, a sustained drop below 1.2405 or above 1.2475 is unlikely.”

Next 1-3 weeks: “Last Friday (21 Apr, spot at 1.2435), we indicated that the recent downward pressure has faded and we highlighted that GBP ‘is likely to trade sideways between 1.2345 and 1.2510 for the time being’. We continue to hold the same view.”