Further consolidation, likely within the 1.1950-1.2190 range, is expected in GBP/USD in the next weeks, noted UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: “We highlighted yesterday that GBP could drop further but ‘any decline is likely part of a lower trading range of 1.2000/1.2150’. GBP dropped briefly to 1.2029 in London trade, rebounded to 1.2128 before ending the day on a slightly firm note at 1.2110 (+0.45%). Today, GBP could edge higher but a sustained rise above 1.2150 is unlikely. The major resistance at 1.2190 is not expected to come under threat. On the downside, a breach of 1.2050 (minor support is at 1.2080) would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “Our update from yesterday (16 Mar, spot at 1.2075) is still valid. As highlighted, GBP is likely to trade in a broad consolidation range, expected to be between 1.1950 and 1.2190.”