GBP/USD still seen between 1.3750 and 1.3950 – UOB

Cable is forecast to navigate within the 1.3750-1.3950 range in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘further sideway-trading would not be surprising even though the firmed underlying tone suggests a higher trading range of 1.3850/1.3925’. GBP subsequently traded within a narrower range than expected (1.3867/1.3929). Further sidewaytrading would not be surprising, albeit at a lower range of 1.3850/1.3920.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (23 Apr, spot at 1.3845). As highlighted, the recent GBP strength has come to an end and the current movement is viewed as part of a consolidation phase. In other words, GBP us expected to trade sideways, likely between 1.3750 and 1.3950. Looking ahead, a break of 1.3950 would not be surprising but GBP has to close above 1.3980 before a sustained advance can be expected.”