GBP/USD: FURTHER CONSOLIDATION REMAINS WELL IN PLACE – UOB

Cable is now seen navigating the 1.3730-1.3885 range in the next weeks, suggested FX Strategists at UOB Group.

KEY QUOTES

24-hour view: “Our view for a weaker GBP yesterday was incorrect as it rose to 1.3852 before settling on a firm note at 1.3843 (+0.25%). Despite the advance, upward momentum has not improved by much. That said, there is room for GBP to advance further but a break of the major resistance at 1.3885 is unlikely (next resistance is at 1.3910). On the downside, a breach of 1.3810 would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (15 Sep, spot at 1.3810). As highlighted, the current movement is viewed as part of a consolidation phase and GBP could trade between 1.3730 and 1.3885 for a period of time.”