GBP/USD sticks to the range bound theme – UOB

Cable is expected to keep navigating within the 1.3460-1.3680 range for the time being, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘downward pressure has eased with the rebound and GBP is unlikely to weaken further’ and we expected GBP to ‘consolidate and trade between 1.3555 and 1.3630’. GBP subsequently traded between 1.3571 and 1.3638. The underlying tone has improved somewhat and GBP could edge above 1.3650. The major resistance at 1.3680 is not expected to come under threat. Support is at 1.3595 followed by 1.3570.”

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.”