GBP/USD: Weakness in GBP stabilizes – UOB Group

The Pound Sterling (GBP) is expected to continue to trade in a range, probably between 1.2190 and 1.2280. In the longer run, weakness in GBP has stabilized; it is likely to trade in a range between 1.2130 and 1.2390, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Likely to trade in a range between 1.2130 and 1.2390

24-HOUR VIEW: "We indicated yesterday that GBP 'may trade in a range, probably between 1.2180 and 1.2290.' GBP subsequently traded in a 1.2173/1.2260 range, closing little changed at 1.2239 (-0.04%). The price action provides no fresh clues, and we continue to expect GBP to trade in a range, probably between 1.2190 and 1.2280."

1-3 WEEKS VIEW: "We revised our GBP view to neutral yesterday (16 Jan, spot at 1.2240), indicating that the recent 'weakness has stabilised.' We indicated that GBP 'is likely to trade in a range between 1.2130 and 1.2390.' We continue to hold the same view."