GBP/USD forecasted to remain between 1.2790 and 1.300 – UOB

In opinion of FX Strategists at UOB Group, Cable is expected to navigate the 1.2790-1.3000 range in the next weeks.

Key Quotes

24-hour view: “GBP traded between 1.2894 and 1.2970 yesterday before closing slightly higher at 1.2933 (+0.11%). The range was wider and higher than our expected consolidation range of 1.2875/1.2955. The underlying tone has improved a tad and this could lead to GBP retesting the 1.2970 level. For today, a move beyond the major resistance at 1.3000 is unlikely. Support is at 1.2900 but only a break of 1.2870 would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from Wednesday (07 Oct, spot at 1.2885). As highlighted, the outlook for GBP is mixed and it could trade between 1.2750 and 1.3000 for a period of time. In view of the decrease in volatility, a 1.2790/1.3000 range is likely enough to ‘contain’ the price action in GBP, at least for these couple of days. Looking forward, GBP has to break out of the range or it could consolidate for a while more.”