FX Strategist at UOB Group Lee Sue Ann and Quek Ser Leang note GBP/USD is now seen navigating between 1.1420 and 1.1620 in the short-term horizon.

Key Quotes

24-hour view: “We highlighted yesterday that ‘while the strong bounce in GBP could extend, any advance is viewed as part of a higher trading range of 1.1460/1.1560’. Our view was not wrong as GBP traded close to our expected range (1.1464/1.1562). For today, we continue to expect GBP to range-trade, likely within a range of 1.1465/1.1565.”

Next 1-3 weeks: “Our update from yesterday (08 Sep, spot at 1.1525) still stands. As highlighted, the price actions over the past few days appears to be part of a consolidation and GBP is likely to trade within a range of 1.1420/1.1620 for now.”