Currency strategists at UOB Group note that it is expected that GBP/USD remains trapped between 1.3560 and 1.3725 In the next weeks.
24 hour view: “GBP/USD moved relatively calmly yesterday before settling at 1.3613 (+0.11%). Momentum indicators are mostly neutral and GBP/USD is likely to move sideways today. is between 1.3585 and 1.3660.”
Next 1-3 weeks: “On Tuesday (Jan 18, GBP/USD at 1.3645), we highlighted that GBP/USD’s recent strength is over and we were expecting GBP/USD to move between 1.3560 and 1.3725. The pair subsequently fell to 1.3573 before rallying. While the underlying tone has softened, we continue to expect GBP/USD to trade between 1.3560 and 1.3725. Looking ahead, only a clear break of 1.3540 would indicate that GBP/USD is ready to go down on a sustained basis.”