GBP/USD sticks to the rangebound theme – UOB

FX Strategists at UOB Group noted Cable is still seen within the 1.3820-1.4020 range for the time being.

Key Quotes

24-hour view: “Our expectation for GBP to ‘dip below 1.3860’ did not materialize as it traded between 1.3871 and 1.3938 before closing little changed at 1.3880 (+0.07%). The underlying tone still appears to be a tad soft and we continue to see chance for GBP to dip below 1.3860. The major support at 1.3820 is unlikely to come into the picture (there is another support at 1.3840). Resistance is at 1.3900 followed by 1.3935.”

Next 1-3 weeks: “Our latest narrative from last Thursday (24 Jun, spot at 1.3965) still stands. As highlighted, we view the current movement as part of a consolidation and GBP could trade within a 1.3820/1.4020 range for a while more.”