GBP/USD is now seen navigating the 1.1850-1.2080 range in the next few weeks, suggest Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
24-hour view: “Yesterday, GBP rose to 1.2188 before plummeting to close at 1.1958 (-1.08%). While oversold, the weakness in GBP could extend to 1.1915 before stabilization is likely. Resistance is at 1.2000, but only a breach of 1.2030 would indicate that the weakness has stabilized.”
Next 1-3 weeks: “The recent build-up in upward momentum has faded as GBP dropped sharply by 1.08% yesterday (NY close of 1.1958). GBP appears to have moved into a consolidation phase and is likely to trade within a range of 1.1850/1.2080.”