GBP/USD keeps pointing to some consolidation near term – UOB

GBP/USD is forecast to maintain the 1.3460/1.3680 range for the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While we expected GBP to weaken yesterday, we were of the view that ‘any weakness is likely limited to 1.3580’. However, GBP plummeted to 1.3545 before rebounding strongly. Downward pressure has eased with the rebound and GBP is unlikely to weaken further. For today, GBP is more likely to consolidate and trade between 1.3555 and 1.3630.”

Next 1-3 weeks: “There is no change in our view from Monday (04 Oct, spot at 1.3570). As highlighted, the current movement in GBP is viewed as part of a consolidation phase and GBP could trade within a 1.3460/1.3680 range for now.”