Set to drift lower towards 1.3060 – UOB Group

GBP could drift lower, possibly reaching 1.3060. The likelihood of a clear break below this level seems low for now, UOB Group FX strategists Quek Ser Leang and Alvin Liew note.

GBP may reach 1.3060 near term

24-HOUR VIEW: “GBP popped to a high of 1.3238 in NY trade last Friday before dropping sharply and swiftly to 1.3111. GBP closed at 1.3130 (-0.36%). There has been a slight increase in downward momentum, and GBP could dip below 1.3100 today. Given the mild downward pressure, any decline is not expected to reach 1.3060. Resistance is at 1.3160; a breach of 1.3190 would indicate that the current mild downward pressure has eased.”

1-3 WEEKS VIEW: “The recent price action has resulted in a modest increase in downward momentum. As long as 1.3250 is not breached, we expect GBP to drift lower, possibly reaching 1.3050. The likelihood of GBP breaking clearly below this level seems low for now.”