GBP/USD is likely to maintain the ongoing consolidation within 1.1970-1.2150 range in the next weeks, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the sharp pullback has scope to extend but any decline is viewed as part of a lower trading range of 1.1970/1.2090’. We added, ‘a sustained drop below 1.1970 is unlikely’. GBP subsequently traded between 1.1965 and 1.2088 before closing little changed at 1.2025 (+0.06%). The price actions are likely part of a consolidation phase and today, we expect GBP to trade sideways between 1.1970 and 1.2085.”

Next 1-3 weeks: “Our update from two days ago (28 Feb, spot at 1.2065) is still valid. As highlighted, GBP is likely to consolidate and trade in a broad range of 1.1970 and 1.2150 for the time being.”