GBP/USD is seen trading within the 1.1420-1.1620 range in the next few weeks, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.
Key Quotes
24-hour view: “Yesterday, we held the view that GBP ‘could edge lower but a sustained decline below 1.1465 is unlikely’. We did not anticipate the subsequent choppy price actions as GBP plunged briefly below the Mar 2020 low of 1.1415 (low of 1.1407) before snapping back up to end the day higher by 0.16% (NY close of 1.1535). While the strong bounce could extend, any advance is viewed as part of a higher trading range of 1.1460/1.1560.”
Next 1-3 weeks: “Two days ago (06 Sep, spot at 1.1575), we highlighted that the recent weakness in GBP has run its course and we expect GBP to consolidate and trade between 1.1465 and 1.1700. We did not anticipate the brief drop below the pandemic low of 1.1415 yesterday and the subsequent strong bounce. The price actions still appear to be part of a consolidation and GBP is likely to trade within a range of 1.1420/1.1620 for now.”