In the opinion of UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, GBP/USD is expected to trade within the 1.2345-1.2510 range in the next few weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the outlook for GBP is mixed’ and we expected it to ‘trade in a range between 1.2375 and 1.2475’. GBP subsequently traded in a relatively choppy manner between 1.2405 and 1.2468. The price actions are likely part of a consolidation and we expect GBP to trade in a range of 1.2400/1.2475 today.”

Next 1-3 weeks: “Our most recent narrative was from Monday (17 Apr, spot at 1.2405) wherein GBP ‘could edge lower but any decline is unlikely to break clearly below the major support at 1.2275’. However, GBP has not been able to make any headway on the downside. Downward pressure has faded and GBP is likely to trade sideways between 1.2345 and 1.2510 for the time being.”