GBP/USD keeps the broad rangebound unchanged – UOB

Cable is expected to trade within a consolidative mood for the time being, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for GBP to “test 1.2930” was incorrect as it slumped to an overnight low of 1.2835. Despite the relatively steep decline, downward momentum has not improved by much. That said, there is room for GBP to dip below 1.2835 but weakness is viewed as a lower trading range of 1.2825/1.2900 (a sustained decline below 1.2825 is not expected)”.

Next 1-3 weeks: “While GBP dropped sharply last Friday (22 Nov), it rebounded strongly and recovered most of its loss yesterday (1.2898, +0.49%). Indicators are showing mixed signals and from a slightly longer-term perspective, the price action since last month’s 1.3012 peak could be part of a broad and prolonged sideway consolidation phase (note that we previously expected GBP to stay underpinned but held the view that a move above 1.3012 is unlikely). To put it another way, GBP could trade between 1.3012 and the month-to-date low near 1.2770 for a while more”.