GBP/USD still seen within 1.4090-1.4250 – UOB

In opinion of FX Strategists at UOB Group, Cable is expected to navigate within the 1.4090-1.4250 range fo the time being.

Key Quotes

24-hour view: “We expected GBP to weaken yesterday but we highlighted that ‘any weakness is likely limited to a test of 1.4120’. We added, ‘the next support at 1.4090 is unlikely to come under threat’. Our view was not wrong as GBP dropped to 1.4112 before rebounding quickly. Downward pressure has eased and for today, GBP is likely to consolidate and trade within a 1.4135/1.4200 range for today.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (02 Jun, spot at 1.4150). As highlighted, GBP is likely to trade within a 1.4090/1.4250 range for now. Looking ahead, GBP has to close above 1.4250 or below 1.4090 before a more directional price actions can be expected.”