GBP/USD still seen between 1.3820 and 1.4020 – UOB

In opinion of FX Strategists at UOB Group, Cable is still expected to navigate within the 1.3820-1.4020 range for the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday GBP could ‘edge up to the 1.3980’ but we were of the view that ‘1.4020 is not expected to come into the picture’. GBP subsequently rose to 1.4001 before pulling back. Upward pressure is beginning to ease and GBP is unlikely to strengthen much further. For today, GBP is more likely to trade between 1.3930 and 1.4005.”

Next 1-3 weeks: “On Tuesday (22 Jun, spot at 1.3920), we held the view that the recent weakness in GBP has run its course and we expect GBP to ‘trade within a 1.3820/1.4020 range’. GBP rose to 1.4001 yesterday (23 Jun) before easing off. There is no change in our view and we continue to regard the current movement as part of a consolidation. In other words, GBP could trade within a 1.3820/1.4020 for a while more.”