GBP/USD: Further rangebound seen within 1.3735-1.3900 – UOB

Cable is still forecast to navigate within the 1.3735-1.3900 range in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected GBP to ‘consolidate and trade between 1.3830 and 1.3900’. GBP subsequently rose to within a couple of pips of our expected range (high of 1.3898) before falling sharply to 1.3805. The choppy price actions have resulted in a mixed outlook. For today, GBP could trade between 1.3800 and 1.3885.”

Next 1-3 weeks: “There is no change to our view from two days ago (14 Jul, spot at 1.3805). As highlighted, GBP is likely to trade between 1.3735 and 1.3900 for a period of time. Looking ahead, a breach of 1.3900 is not ruled out but GBP has to close above 1.3930 before a sustained advance can be expected. On the downside, 1.3735 is a solid support and only a break of this level would indicate that GBP is ready to head lower towards 1.3670.”