GBP/USD is expected to trade within 1.2015-1.2260 – UOB

Pablo Piovano FXStreet

GBP/USD seems to have now moved into a consolidative phase, likely between 1.2015 and 1.2260, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We did not anticipate the sharp rise in GBP to 1.2193 and the subsequent sharp pullback from the high (we were expecting GBP to trade in a range). Despite the advance, there is no significant improvement in upward momentum and GBP is unlikely to rise further. Today, GBP is more likely to trade sideways, expected to be between 1.2060 and 1.2175.”

Next 1-3 weeks: “Yesterday (09 Feb 2023, spot at 1.2070), we highlighted that there is still a slim chance for GBP to drop to 1.1845. GBP subsequently rose above our ‘strong resistance’ level of 1.2150 (high has been 1.2193). The breach of the ‘strong resistance’ indicates that the GBP weakness that started early this month (see annotations in the chart below) has ended. GBP appears to have entered a consolidation phase and it is likely to trade between 1.2015 and 1.2260 for now.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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