GBP/USD faces extra consolidation near term – UOB

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group note GBP/USD is expected to navigate within the 1.2000-1.2210 range in the next weeks.

Key Quotes

24-hour view: “Our view that the ‘overbought rise in GBP could extend to 1.2165’ was incorrect as it dropped sharply to a low of 1.2035. While there is room for GBP to weaken further, it is unlikely to break the major support at 1.2000. Resistance is 1.2075, followed by 1.2105.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (22 Feb, spot at 1.2115). As highlighted, the current price movements appear to be part of a broad consolidation range and GBP is likely to trade between 1.2000 and 1.2210 for the time being.”