GBP/USD is now expected to navigate within the 1.2100/1.2380 range in the next few weeks, according to UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.
Key Quotes
24-hour view: After GBP dropped to a low of 1.2111 on Wednesday, we indicated yesterday that “while the weakness in GBP has not really stabilised, downward momentum is showing tentative signs of slowing.” We held the view that, “there is room for GBP to test 1.2100, but a clear break below this level is unlikely.” Not only did GBP not test 1.2100, it also rebounded strongly and posted its largest 1-day gain in a month (1.2202, +0.55%). The strong rebound could extend to 1.2250 before levelling off. The next resistance at 1.2300 is unlikely to come under threat. Support is at 1.2170, followed by 1.2145.
Next 1-3 weeks: Yesterday, GBP rebounded strongly and took out our ‘strong resistance’ level of 1.2220. The breach of the ‘strong resistance’ level means that the GBP weakness that started early this month has finally ended. The current price movement is likely the early stages of a consolidation phase. In view of the sharp drop over the past month, GBP could consolidate in a relatively broad range of 1.2100/1.2380 for the time being.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats below 1.1350 after Trump threatens 50% tariffs on EU
EUR/USD pulls away from the two-week-high it set above 1.1370 and trades below 1.1350 in the American session on Friday. US President Donald Trump said that he is recommending a "straight 50% tariff" on European imports, making it difficult for the pair to preserve its bullish momentum.
GBP/USD rallies to fresh multi-year high near 1.3500
GBP/USD capitalizes on the heavy selling pressure surrounding the US Dollar and trades at its highest level since February 2022 near 1.3500 in the European session on Friday. The data from the UK showed that Retail Sales rose by 1.2% in April, surpassing the market expectation of 0.2% and supporting Pound Sterling.
Gold extends weekly rally, trades above $3,350
Gold builds on its weekly gains and trades above $3,350 in the second half of the day on Friday. The selling pressure surrounding the US Dollar and the risk-averse market atmosphere after US President Donald Trump threatened 50% tariffs on European imports fuel XAU/USD's rally.
Apple stock sinks below $200 after Trump threatens more tariffs Premium
Apple (AAPL) stock is back in US President Donald Trump's crosshairs on Friday as America's 47th president lambasted the Mac-maker for investing in production capacity in India rather than the United States.
The “One big, beautiful bill” is here: Who wins and who loses?
The U.S. House has passed a sweeping $3.8 trillion tax-and-spending package, narrowly approved in a 215–214 vote. Dubbed by former President Donald Trump as the “One Big Beautiful Bill,” it combines broad-based tax relief with deep cuts to social spending and marks a major turning point in U.S. fiscal policy.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.