Outlook for GBP/USD remains mixed and is expected to trade between 1.2430 and 1.2670 in the coming weeks, suggest UOB Group currency strategists Lee Sue Ann and Quek Ser Leang.
Key comments
24 hour view: “We were expecting GBP/USD to ‘trade sideways into a 1.2470/1.2570 range’ yesterday. However, GBP/USD fell as low as 1.2433 before rising again to close at 1.2590 (+0.49%). from the bottom has room to extend but a sustained rally above 1.2630 is unlikely (next resistance is 1.2670) To the downside a break of 1.2540 (minor support is 1.2570) would indicate that the Current bullish pressure has subsided.”
Next 1-3 weeks: “Last Friday (June 3, GBP/USD at 1.2570), we highlighted that sharp but short-lived swings have resulted in a mixed picture and we expect GBP/USD to trade between 1.2470 and 1.2670. Yesterday (June 6, GBP /USD at 1.2515), noting that the underlying tone has softened and GBP/USD could drop below support at 1.2470, adding that ‘Looking forward, GBP/USD needs to close below 1.2430 before it breaks’. sustained decline likely.” GBP/USD subsequently dipped briefly to 1.2433 before rebounding sharply. With price action, the outlook remains mixed and a further choppy move, likely between 1.2430 and 1.2670, would not be surprising.”
Source: Fx Street
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