In opinion of FX Strategists Quek Ser Leang and Lee Sue Ann at UOB Group, GBP/USD is seen navigating the 1.3050-1.3200 range in the next weeks.

Key Quotes

24-hour view: “We held the view yesterday that ‘the bias for GBP is on the downside’. However, GBP traded in a quiet manner between 1.3094 and 1.3136 before closing unchanged at 1.3115. Momentum indicators are mostly neutral and GBP is likely to trade sideways today, expected to be within a range of 1.3085/1.3145.”

Next 1-3 weeks: “We have held the same view since last Thursday (31 Mar, spot at 1.3140) where GBP ‘is likely to trade between 1.3050 and 1.3250 for now’. GBP traded sideways for the past couple of days and there is no change in our view. That said, the decreased volatility suggests GBP could stay within a narrower range of 1.3050/1.3200. Looking ahead, the downside appears to be more at risk even though GBP has to close below 1.3050 before a sustained decline is likely.”