GBP/USD is forecast to remain range bound between 1.2430 and 1.2600 in the coming weeks, say UOB Group currency strategists Lee Sue Ann and Quek Ser Leang.
Key comments
24 hour view: “Yesterday we highlighted that ‘momentum indicators are turning neutral’ and expect GBP/USD to ‘trade sideways within a range of 1.2490/1.2590’. Our view on the sideways move was not wrong, although GBP/USD traded within a tighter range than expected (1.2488/1.2557) Underlying tone has softened a bit and GBP/USD could move lower from here However, major support at 1.2430 is unlikely to come into the picture (There is another support at 1.2460.) Resistance is at 1.2525, followed by 1.2550.”
Next 1-3 weeks: “Last Friday (June 3, GBP/USD at 1.2570), we highlighted that the outlook for GBP/USD is mixed and we expect GBP/USD to trade between 1.2430 and 1.2670. Subsequently, GBP/USD moved well within that range.Although short-term bearish momentum has improved a bit, we expect GBP/USD to move sideways for now, albeit within a tighter range of 1.2430/1.2600.”
Source: Fx Street
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