Can break below 1.2900 – UOB Group

The Pound Sterling (GBP) could trade in a choppy and broad range of 1.2900/1.3040. In the longer run, for the time being, GBP is likely to trade in a 1.2900/1.3030 range, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann notes.

GBP is likely to trade in a 1.2900/1.3030 range

24-HOUR VIEW: “The sharp rise in GBP that sent it to a high of 1.3043 was surprising (we were expecting range trading). GBP was unable to hold on to its gains, as it plunged today. The outlook is unclear after the wide fluctuations. Further choppy trading is not ruled, likely within a broad 1.2910/1.3040 range.”

1-3 WEEKS VIEW: “Yesterday (05 Nov, spot at 1.2955), we pointed out that ‘the recent buildup in downward momentum has faded.’ We expect GBP to ‘trade in a 1.2900/1.3030 range for the time being.’ While GBP rose above 1.3030 (high of 1.3043), it plummeted from the high. The price action provides no fresh clues, and we continue to expect GBP to trade in a 1.2900/1.3030 range.”