GBP/USD will move within the range 1.1420-1.1620 in the coming weeks, suggest UOB Group currency strategists Lee Sue Ann and Quek Ser Leang.
24 hour view: “Yesterday we held the view that GBP/USD “could go lower, but a sustained decline below 1.1465 is unlikely”. We did not anticipate subsequent price action as GBP/USD dipped briefly below the 1.1415 low March 2020 (low 1.1407) before rising again to end the day up 0.16% (close 1.1535 NYC) Although the strong bounce could be prolonged, any advance is seen as part of an upper range of 1.1460/1.1560″.
Next 1-3 weeks: “Two days ago (Sep 6, GBP/USD at 1.1575), we highlighted that the recent GBP/USD weakness is over and we expected GBP/USD to consolidate and trade between 1.1465 and 1.1700. We hadn’t anticipated the brief drop for below yesterday’s pandemic low of 1.1415 and subsequent strong rebound. Price action still appears to be part of a consolidation and GBP/USD is likely to trade in a range of 1.1420/1.1620 for now.”
Source: Fx Street