GBP/USD seen trading within 1.2430-1.2600 – UOB

GBP/USD is predicted to remain side-lined in the next weeks, noted FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘momentum indicators are turning neutral’ and we expected GBP to ‘trade sideways within a range of 1.2490/1.2590’. Our view for sideway-trading was not wrong even though GBP traded within a narrower range than expected (1.2488/1.2557). The underlying tone has softened somewhat and GBP could drift lower from here. However, the major support at 1.2430 is unlikely to come into the picture (there is another support at 1.2460). Resistance is at 1.2525 followed by 1.2550.”

Net 1-3 weeks: “Last Friday (03 Jun, spot at 1.2570), we highlighted the outlook for GBP is mixed and we expected GBP to trade between 1.2430 and 1.2670. GBP subsequently traded well within the range. While shorter-term downward momentum has improved somewhat, we expect GBP to trade sideways for now, albeit within a narrower range of 1.2430/1.2600.”