Further rangebound expected around GBP/USD – UOB

According to FX Strategists at UOB Group, Cable is still expected to trade within the familiar broad range.

Key Quotes

24-hour view: “GBP traded between 1.2897 and 1.2949 yesterday, narrower than our expected sideway-trading range of 1.2885/1.2955. The underlying tone has firmed somewhat and this would likely translate into a test of 1.2980. For today, a sustained rise above this level is not expected (next resistance is at 1.3000 followed closely by last month’s top at 1.3012). Support is at 1.2920 but the stronger level is closer to 1.2900”.

Next 1-3 weeks: “Despite big moves in other major currency pairs, GBP traded in a relatively quiet manner yesterday and ended the day little changed. The price action offers no fresh clues and the outlook for GBP remains mixed. In other words, there is no change to our view wherein GBP ‘could trade sideways within a broad range for a while more’ (same view since last Tuesday, 26 Nov, spot at 1.2900). From here, a 1.2840/1.3012 range (narrowed from 1.2770/1.3012 previously) is likely enough to contain the movement in GBP, at least for the next few days. Looking forward, the current consolidation is likely to be resolved by GBP moving above last month’s peak at 1.3012”.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD defends gains above 1.1300 amid broad dollar recovery

EUR/USD defends gains above 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 


GBP/USD batting to extend gains beyond 1.2600

Risk-on mood limits the dollar’s bullish potential. GBP/USD bounces from daily lows, but Brexit concerns weigh on Sterling. BOE Governor Bailey's speech awaited.


Gold sits near daily tops, just below $1810 level

A combination of supporting factors assisted gold to regain positive traction on Monday. Sustained USD selling remained supportive amid concerns about rising COVID-19 cases. The prevalent risk-on mood might turn out to be the only factor capping any strong gains.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI breaches $40 mark as talks of OPEC+ output cuts easing weigh

WTI (August futures on Nymex) extends Friday’s sell-off into the European trading this Monday, following a brief consolidation seen above $40 mark earlier in the Asian session.

Oil News