GBP/USD is still seen navigating within the 1.2640-1.2830 range in the next weeks, according to Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: We noted yesterday that “There is no clear directional bias” and we expected GBP to trade sideways in a range of 1.2700/1.2775. GBP then traded in a narrower range than expected (1.2711/1.2767). There is a slight increase in upward momentum, and there is room for GBP to edge above 1.2790. However, any advance is unlikely to threaten the major resistance at 1.2830. Support is at 1.2730, followed by 1.2710. 

Next 1-3 weeks: We continue to hold the same view as yesterday (21 Aug, spot at 1.2740). As highlighted, the price actions in GBP over the past week or so appears to be part of a consolidation phase.  For the time being, GBP could continue to trade sideways, likely between 1.2640 and 1.2830.