GBP/USD: View is still negative - UOB Group

The current price movements are likely part of a 1.3360/1.3460 consolidation phase. In the longer run, GBP view is still negative; the next technical target at 1.3320 may not come into view so soon, as it could consolidate first, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Current price movements are likely part of a 1.3360/1.3460

24-HOUR VIEW: "While we indicated yesterday that 'there is room for GBP to weaken further', we pointed out that 'any decline is likely part of a lower range of 1.3360/1.3445.' The subsequent price movements did not turn out as we expected. After dipping to a low of 1.3366, GBP popped to a high of 1.3485 before dropping back down to close at 1.3418 (+0.25%). Despite the sharp fluctuations, the current price movements are likely part of a consolidation phase. Expected range for today: 1.3360/1.3460."

1-3 WEEKS VIEW: "We highlighted the following yesterday (16 Jul, spot at 1.3395): 'We maintain our negative GBP view, even though the next technical target at 1.3320 may not come into view so soon - short-term oversold conditions could lead to consolidation first. On the upside, should GBP break above 1.3500 ('strong resistance'), it would mean that the weakness in GBP has stabilised.' Our view still stands."