In opinion of FX Strategists at UOB Group, GBP/USD should keep navigating between 1.3690 and 1.3840 for the next weeks.

Key Quotes

24-hour view: “Our expectations for ‘the rapid decline in GBP to extend’ did not materialize as it traded in a relatively quiet manner between 1.3742 and 1.3790 before closing largely unchanged at 1.3768 (+0.09%). The underlying tone still appears to be a tad soft and GBP could drift lower from here. However, a clear break of 1.3725 is unlikely. Resistance is at 1.3790 followed by 1.3810.”

Next 1-3 weeks: “There is no change in our view from yesterday (25 Oct, spot at 1.3755). As highlighted, the recent GBP strength has come to an end. The current movement is viewed as part of a consolidation phase and GBP is likely to trade between 1.3690 and 1.3840.”