GBP/USD still seen within the 1.3580-1.3760 range – UOB

According to FX Strategists at UOB Group, Cable remains navigating within the 1.3580-1.3760 range for the time being.

Key Quotes

24-hour view: “Our view for GBP yesterday was that it ‘could dip below the 1.3650 support but is unlikely to threaten the next support at 1.3610’. While our expectation was not wrong, GBP came close to taking out 1.3610 as it dropped to 1.3611 before rebounding sharply. The sharp bounce amid oversold conditions suggests further GBP weakness is unlikely. For today, GBP is more likely to trade sideways between 1.3630 and 1.3710.”

Next 1-3 weeks: “There is not much to add to our update from last Thursday (28 Jan, spot at 1.3665). As highlighted, ‘the bias is tilted to the downside but any weakness is viewed as part of a 1.3580/1.3760 range’. In other words, GBP could drift lower but a sustained decline below 1.3580 is unlikely.”