Economist Lee Sue Ann and UOB Group Market Strategist Quek Ser Leang point out that GBP/USD is expected to move between 1.2580 and 1.2780 in the coming weeks.
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24 hour view: We expected GBP/USD to trade with a bearish bias yesterday. However, we remain of the view that “a sustained drop below 1.2690 is unlikely”. We do not anticipate price volatility as GBP/USD fell to a low of 1.2615 and then rallied again to close little changed at 1.2740 (+0.06%). The outlook for GBP/USD is mixed after the sharp swings. Today GBP/USD could trade sideways in a 1.2665/1.2765 range.
Next 1-3 weeks: Our most recent analysis dates back to Monday (August 21, GBP/USD at 1.2740), where GBP/USD’s performance in recent weeks appears to be part of a consolidation phase. We expected GBP/USD to trade sideways between 1.2640 and 1.2830. Yesterday (August 23), GBP/USD fell sharply and broke below 1.2640. However, the decline was short-lived as GBP/USD rebounded strongly from 1.2615. Momentum has not picked up and we continue to expect GBP/USD to trade sideways, albeit in a lower 1.2580/1.2780 range.
Source: Fx Street
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