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.
Important Quotes \s24-hour view: “We expected GBP trade sideways between 1.2200 and 1.2300 yesterday. After falling to a low of 1.2222 in late New York trading, the pound climbed to a high of 1.2294. Upward momentum has improved, albeit not much. Today, GBP is likely to encounter significant resistance at 1.2340. Although a breach of this level is not ruled out, it is unlikely that GBP will maintain a foothold above this level (next resistance is at 1.2400). Support is at 1.2265; a breach of 1.2240 would indicate that the pound is no longer advancing.”
Next 1 to 3 weeks: “Our update from yesterday (March 27, spot: 1.2240) remains valid. As stated, the recent GBP strength has ceased. The recent movement is likely part of a consolidation phase. From here, GBP might trade within a band of 1.2140/1.2340. Going ahead, GBP has to break and maintain above 1.2400 before a sustained gain is likely.”