Downward momentum has faded; Pound Sterling (GBP) is likely to trade in a range between 1.3040 and 1.3165, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Downward for GBP/USD momentum has faded
24-HOUR VIEW: “We expected GBP to ‘trade between 1.3065 and 1.3125’ yesterday. GBP then traded within a narrow range of 1.3081/1.3118, closing largely unchanged at 1.3104 (+0.04%). The price movements provide no fresh clues. Today, we expect GBP to trade in a range of 1.3075/1.3125.”
1-3 WEEKS VIEW: “Our most recent narrative was from last Thursday (20 Nov, spot at 1.3060), in which we highlighted that ‘there is room for GBP to test the significant support level at 1.3000’. Yesterday, we pointed out that ‘since then, GBP has not made much headway on the downside’. We added, ‘while we maintain our view for now, downward momentum is starting to slow, and if GBP breaks above 1.3140 (‘strong resistance’ level), it would indicate that GBP is likely to trade in a range rather than testing 1.3000’. GBP subsequently traded in a relatively narrow range of 1.3081/1.3118. Although our ‘strong resistance’ level has not been breached yet, downward momentum has faded. From here, we expect GBP to trade in a range, most likely between 1.3040 and 1.3165.”