According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, GBP/USD remains under pressure and could face some range bound in the near term.

Key Quotes

24-hour view: “We expected GBP to ‘to consolidate within a range of 1.1380/1.1480’ yesterday. However, GBP dipped to 1.1359, rebounded to 1.1440 before closing at 1.1434 (+0.10%). The rebound in GBP has scope to extend but any advance is viewed as part of a higher sideway trading range of 1.1400/1.1480. In other words, we do not expect a sustained rise above 1.1480.”

Next 1-3 weeks: “There is no change in our view from yesterday (19 Sep, spot at 1.1435). As highlighted, the downside risk in GBP remains intact but oversold conditions could lead to 1 to 2 days of consolidation first. All in, the downside risk is intact as long as GBP does not move above 1.1540 (no change in ‘strong resistance’ level from yesterday).”