Pound Sterling (GBP) is expected to trade in a sideways range of 1.3670/1.3750 against US Dollar (USD). In the longer run, outlook remains positive but GBP may consolidate for a couple of days first; the next technical objective is 1.3800, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Oitlook remains positive for GBP
24-HOUR VIEW: "Following the strong surge in GBP that reached a high of 1.3770 last Thursday, we stated on Friday that 'the rapid rise in GBP over the past few days seems overstretched, but given the strong underlying momentum, it is too early to expect a sizeable pullback.' We expected GBP to 'trade in a sideways range of 1.3680/1.3760.' GBP subsequently traded between 1.3684 and 1.3753, closing largely unchanged at 1.3715 (-0.08%). The price action still appears to be part of a sideways trading phase. Today, we expect GBP to trade in a range of 1.3670/1.3750."
1-3 WEEKS VIEW: "We continue to hold the same view as last Friday (27 Jun, spot at 1.3730). As highlighted, 'the outlook for GBP remains positive, but it may consolidate for a couple of days first; the next technical objective is 1.3800.' We will maintain our view as long as the ‘strong support’ at 1.3610 (no change in level) is not breached."
