GBP/USD forecast to keep the 1.3640-1.3850 range – UOB

In opinion of FX Strategists at UOB Group, Cable is still seen navigating within the 1.3630-1.3850 range in the next weeks.

Key Quotes

24-hour view: “We expected GBP to ‘trade sideways within a 1.3695/1.3755 range’ yesterday. GBP subsequently dropped to 1.3699 before rebounding strongly to an overnight high of 1.3767. While upward momentum has not improved by much, there is room for GBP to advance further. A break of 1.3800 is not ruled but GBP is unlikely able to maintain a foothold above this level. Next resistance is at 1.3850. Support is at 1.3735 followed by 1.3700.”

Next 1-3 weeks: “Our view from Tuesday (24 Aug, spot 1.3720) still stands. As highlighted, GBP is likely to consolidate and trade between 1.3640 and 1.3850 for a period of time.”