GBP/USD is still seen trading within a consolidative range in the next few weeks, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: While GBP rose to a high of 1.2739 yesterday, there was no significant increase in upward momentum. That said, there is a chance for GBP to test 1.2555 before the risk of a pullback increases. The major resistance at 1.2800 is not expected to come under threat. Support is at 1.2695, followed by 1.2670. 

Next 1-3 weeks: After dropping to 1.2591 last Friday, GBP rebounded sharply over the past few days. The recent buildup of downward momentum has faded. The current price movements are likely part of a consolidation phase. For the time being, we expect GBP to trade in a range of 1.2630/1.2800.