GBP/USD is expected to navigate the 1.1050-1.1370 range for the time being, suggest Markets Strategist Quek Ser Leang and Economist Lee Sue Ann at UOB Group.
24-hour view: “We highlighted yesterday that ‘the oversold GBP weakness has room to dip below 1.1150 first before stabilization is likely’. However, GBP rebounded strongly from 1.1172 to 1.1338 before plummeting back down to end the day at 1.1239 (+0.14%). Despite the volatile price actions, the underlying tone appears to be soft and we see room for GBP to edge lower. However, a sustained decline below 1.1150 is unlikely (next support is at 1.1100). Resistance is at 1.1260, followed by 1.1310.”
Next 1-3 weeks: “Our update from yesterday (20 Oct, spot at 1.1220) still stands. As highlighted, GBP has moved into a consolidation phase and is likely to trade within a range of 1.1050/1.1370 for the time being.”