GBP/USD faces further choppiness near-term – UOB

In opinion of FX Strategists at UOB Group, Cable is seen navigating in a choppy fashion within the 1.3200-1.3500 range in the short-term.

Key Quotes

24-hour view: “Yesterday, we held the view that GBP ‘could continue to trade in a choppy manner, likely between 1.3270 and 1.3450’. While the subsequent price actions were relatively choppy, GBP traded within a narrower range than expected (1.3289/1.3392). The outlook is mixed and GBP could continue to trade in an erratic manner, likely between 1.3315 and 1.3445.”

Next 1-3 weeks: “We highlighted yesterday (07 Dec, spot at 1.3425) that ‘we still prefer to wait for a daily closing above 1.3481 (high in Sep) before expecting a move to 1.3600 and beyond’. However, GBP sliced through the ‘strong support’ at 1.3320 and plunged to a low of 1.3225 before rebounding strongly. The risk for a sustained advance has more or less dissipated and from here, GBP could trade in a choppy manner within a broad range of 1.3200/1.3500.”