GBP/USD looks to extra consolidation – UOB

FX Strategists at UOB Group noted further downside in Cable looks unlikely, while they keep favouring the continuation of the rangebound theme in the next weeks.

Key Quotes

24-hour view: “GBP traded sideways as expected, even though the registered range of 40 pips (between 1.2822 and 1.2862) was narrower than our expected range of 1.2820/1.2880. Indicators are mostly ‘flat’ and GBP could continue to consolidate and trade sideways. Expected range for today, 1.2825/1.2875”.

Next 1-3 weeks: “GBP traded in a relatively quiet manner as it traded within a 1.2816/1.2873 range. The price action is in line with our view from yesterday (12 Nov, spot at 1.2855) wherein GBP “is deemed to have move back into a sideway-trading phase”. In other words, we continue to expect GBP to trade sideways between 1.2770 and 1.2930 for a period”.