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GBP/USD maintains erratic movements between 1.2430 and 1.2670 – UOB

GBP/USD is still seen trading in the 1.2430-1.2670 range in the coming weeks, according to 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 a sustained decline is likely.” GBP/USD subsequently dipped briefly to 1.2433 before bouncing back strongly. 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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