GBP/USD is now seen navigating the 1.2140-1.2340 range in the next few weeks, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We expected GBP trade sideways between 1.2200 and 1.2300 yesterday. After dipping to a low of 1.2222, GBP rose to a high of 1.2294 in late NY trade. Upward momentum has improved, albeit not much. Today, GBP is likely to test the major resistance at 1.2340. A break of this level is not ruled out but GBP is unlikely to maintain a foothold above this level (next resistance is at 1.2400). Support is at 1.2265; a break of 1.2240 would indicate that GBP is not advancing further.”

Next 1-3 weeks: “Our update from yesterday (27 Mar, spot at 1.2240) is still valid. As highlighted, the recent GBP strength has ended. The current movement is likely part of a consolidation phase. From here, GBP could trade within a range of 1.2140/1.2340. Looking ahead, GBP has to break and stay above 1.2400 before a sustained advance is likely.”