FX Strategists at UOB Group see GBP/USD extending the rangebound theme in the next weeks.
- "24-hour view: GBP traded between 1.2827 and 1.2889 yesterday, wider than our expected sideway-trading range of 1.2825/1.2875. The firm closing in NY of 1.2882 (+0.27%) has improved the underlying tone. The bias from here is for further GBP strength even though the strong 1.2930 level is likely out of reach for today (minor resistance at 1.2910). Support is at 1.2855 followed by 1.2835.
- Next 1-3 weeks: While GBP closed slightly higher at 1.2882 yesterday (+0.26%), the price action lacks momentum. For now, we continue to hold the same view as from Tuesday (12 Nov, spot at 1.2855) wherein the current movement is part of a “sideway-trading phase”. In other words, we continue to expect GBP to trade between 1.2770 and 1.2930 for a while more."