In the opinion of the currency strategists at UOB Group, the position of the GBP/USD remains sloping down in the middle of a wider range between 1.3580 and 1.3760.
24 hour view: “GBP / USD traded between 1.3620 and 1.3683 yesterday, tighter than our expected range of 1.3630 / 1.3710. Price action offers no new clues and GBP / USD could continue to move sideways for now, probably between 1.3620 and 1.3685 “.
Next 1-3 weeks: “GBP / USD has been moving sideways and slightly lower over the last few days. The move is in line with our view last Thursday (Jan 28, GBP / USD at 1.3665) where we highlight that ‘the bias is sloping to the downside, but any weakness is considered part of a 1.3580 / 1.3760 range’. With that said, the short-term bearish momentum has slowed a bit and 1.3580 may not enter the picture. In general, only a clear break below 1.3580 or above 1.3760 would indicate that GBP / USD is poised for a sustained directional move. “