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| GBP/USD Expected to Consolidate within 1.1950-1.2190 Range in Coming Weeks: UOB Analysts |
According to UOB Group's Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, further consolidation within the range of 1.1950-1.2190 is expected for GBP/USD in the coming weeks. On Wednesday, GBP fell to 1.2029, rebounded to 1.2128 before ending the day slightly firm at 1.2110, which indicates that GBP/USD could edge higher, but a sustained rise above 1.2150 is unlikely. The major resistance at 1.2190 is not expected to come under threat. On the downside, a breach of 1.2050 would suggest that the current mild upward pressure has eased.
In the next one to three weeks, UOB analysts expect GBP/USD to trade in a broad consolidation range between 1.1950 and 1.2190. Yesterday's decline in GBP has further extended the range, but UOB remains firm in its assessment that the range will remain in place in the short term. Overall, investors will likely remain cautious as Brexit negotiations and the ongoing coronavirus pandemic continue to impact the currency market.
