GBP/USD now seen within 1.3050-1.3250 – UOB

Analysts at UOB Group predict that cable would trade in a consolidative pattern over the next several weeks, according to their research.

Key Quotes

"We anticipated that the pound would 'move within a band of 1.3050/1.3150' yesterday," said the team. It did, however, rise to a high of 1.3181 before reversing course. The pound's upward momentum has picked up a little, and it might challenge the 1.3195 resistance level from here. For the time being, it seems that a prolonged move over this level is improbable. The next level of resistance is 1.3250. If 1.3120 is breached, then 1.3090 will be the next level to be breached."

"We highlighted two days ago (29 March, spot at 1.3100) that negative momentum had improved marginally, but we were of the opinion that GBP needed to finish below 1.3050 before a protracted slide was possible." Next 1-3 weeks: We said that the probability of the pound closing below 1.3050 was low, but that the trend would stay intact as long as the pound did not go over 1.3195 per cent. The pound hit a high of 1.3181 during New York trading hours, and although the psychological level of 1.3195 has not been surpassed, the impetus that had built up has been dissipated. Alternatively, the pound is not ready to fall further, and it is expected to trade between 1.3050 and 1.3250 for the time being."