June 27, 2023 6:33 AM

GBP/USD presently trading between 1.2650 and 1.2850

GBP/USD presently trading between 1.2650 and 1.2850

According to UOB Group's Economist and Markets Strategist, the GBP/USD has entered a consolidation period.

Important Quotes

24-hour perspective: Yesterday, we stated that "price movements are likely part of a consolidation phase," and we predicted that GBP would trade in a range between 1.2690 and 1.2760. GBP then fluctuated between 1.2689 and 1.2748 before finishing barely altered at 1.2712 (-0.03%). We continue to expect GBP to move in a range, most likely between 1.2685 and 1.2750, based on price activity.

Within the next 1-3 weeks: Our most recent narrative was from last Thursday (22 June, spot at 1.2770), in which we stated that the recent GBP surge has finished and the currency is expected to move between 1.2650 and 1.2850 for the time being. Our assessment was correct, as GBP traded rather quietly over the last three days. While the underlying tone has eased slightly, there are no early signals that GBP is set to fall further. In other words, we will continue to keep the same position for the time being.