GBP/USD: Outlook remains mixed for the time being – UOB

GBP/USD sticks to its mixed outlook and is expected to trade between 1.1950 and 1.2240 in the next weeks, suggest Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: “We did not anticipate the strong surge in GBP to 1.2112 last Friday (we were expecting GBP to trade in a range). The rapid rise has scope to test 1.2145. The major resistance at 1.2240 is not expected to come into view. Support is at 1.2040, followed by 1.2000.”

Next 1-3 weeks: “Last Friday (10 Mar, spot at 1.1915), we indicated that ‘downward momentum is beginning to fade and a break of 1.1950 would indicate that GBP is unlikely to weaken further’. However, we did not anticipate GBP jumping to a high of 1.2112. After the recent sharp but short-lived swings, the outlook for GBP is mixed. For the time being, we expect GBP to trade in a broad range of 1.1950/1.2240.”