In the opinion of UOB Group currency strategists Lee Sue Ann and Quek Ser Leang, it is considered that GBP/USD will navigate the 1.2040-1.2255 range in the coming weeks.
24 hour view: “We were expecting GBP/USD to weaken yesterday, but were of the view that ‘major support at 1.2040 is not expected to come into the picture’. Subsequent price action did not pan out as expected as GBP/USD rose briefly to 1.2220, tumbled to 1.2065 before rising again to end the day little changed at 1.2158 (+0.08%) The sharp swings have led to a mixed picture For today, GBP/USD could continue to trade choppy manner, probably staying within yesterday’s wide range of 1.2065/1.2220.”
Next 1-3 weeks: “Our last story was on Wednesday (Aug 3, GBP/USD at 1.2160), where GBP/USD ‘is in a consolidation phase’ and ‘likely to trade in a range of 1.2040/1.2255 ‘.Yesterday, GBP/USD rose briefly to 1.2220 and tumbled to 1.2065 before rebounding to close little changed at 1.2158 (+0.08%).Price action offers no new clues and we hold the same view for now.” .
Source: Fx Street