GBP/USD: A deeper retracement seems unlikely – UOB

Further losses in GBP/USD now appear to have lost momentum, exposing some consolidation in the near term, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We expected GBP to ‘trade sideways between 1.3010 and 1.3075’ yesterday. GBP subsequently traded in a relatively choppy manner between 1.3023 and 1.3091 before closing on a soft note at 1.3028 (-0.31%). The slightly weakened underlying tone suggests GBP could drift lower. That said, any decline is likely limited to a test of 1.2995. The next support at 1.2975 is unlikely to come into the picture. Resistance is at 1.3045 followed by 1.3060.”

Next 1-3 weeks: “There is no change in our view from yesterday. As highlighted, GBP is likely to trade sideways for a period of time, expected to be within a range of 1.2975/1.3100.”