In the view of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, the negative view around GBP/USD remains intact for the time being.

Key Quotes

24-hour view: “Our view for GBP to break below 1.2300 last Friday was incorrect as it rebounded from 1.2317 to 1.2395 and then dropped back down to close at 1.2351 (+0.24%). The price actions appear to be consolidative and today, we expect GBP to consolidate in a range of 1.2320/1.2390.”

Next 1-3 weeks: “We continue to hold the same view as last Friday (26 May, spot at 1.2320) wherein ‘the 2-week weakness in GBP is intact but it remains to be seen if 1.2175 will come into view this time around’. On a shorter-term note, it is worth noting that both 1.2300 and 1.2250 are strong support levels. On the upside, a breach of 1.2415 (no change in ‘strong resistance’ level) would suggest the GBP weakness has stabilized.”