Further rangebound not ruled out in GBP/USD – UOB

In view of FX Strategists at UOB Group, Cable is still seen within a consolidative phase in the near-term.

Key Quotes

24-hour view: “GBP traded between 1.2879 and 1.2945 last Friday, wider than our expected sideway-trading range of 1.2880/1.2930. The price action is still viewed as part of an on-going consolidation phase. In other words, GBP is expected to continue to trade sideways for now, albeit likely at a slightly higher range of 1.2885/1.2955”.

Next 1-3 weeks: “There is not much to add as GBP retreated after touching 1.2953 and ended the day little changed at 1.2914 (-0.09%). As highlighted yesterday (28 Nov, spot at 1.2930), ‘upward momentum has not improved by much’ and ‘the outlook for GBP is still mixed’. In other words, we continue to expect GBP to trade between the month-to-date low near 1.2770 and last month’s peak of 1.3012 for a while more. Looking forward, GBP edge above 1.3012 first but at this stage, the prospect for a sustained rally above this level is not high”.