In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, GBPUSD could navigate within a range bound theme before attempting a move higher.
24-hour view: “We highlighted last Friday that ‘the price movements appear to be part of a broad consolidation’ and we expected GBP to ‘trade between 1.1790 and 1.1950’. GBP subsequently traded within a narrower range than expected (1.1859/1.1950). The price actions still appear to be part of a consolidation and we expect GBP to trade between 1.1820/1.1940 today.”
Next 1-3 weeks: “Our latest narrative was from last Wednesday (16 November, spot at 1.1880) where GBP could consolidate first before making another push higher but the chance of a break of 1.2100 does not appear to be high. While there is no change in our view, upward momentum is beginning to wane. However, only a break of 1.1790 (‘strong support’ level previously at 1.1750) would indicate that GBP is not advancing further.”