Pound Sterling (GBP) is likely to trade in a range between 1.3130 and 1.3190. In the longer run, GBP is likely to edge higher within a range of 1.3065/1.3230, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
GBP is likely to edge higher within a range
24-HOUR VIEW: “Yesterday, we expected GBP to ‘trade in a range between 1.3105 and 1.3175’. However, instead of trading in a range, GBP edged higher to a high of 1.3191. GBP closed at 1.3178, up by 0.10%. Despite edging higher, there is no increase in upward momentum, and we continue to expect GBP to trade in a range today, most likely between 1.3130 and 1.3190.”
1-3 WEEKS VIEW: “Our most recent narrative was from last Friday (07 Nov, spot at 1.3140), in which we stated that the recent GBP weakness ‘has come to an end’. We highlighted that GBP ‘could recover further but any advance is likely part of a higher range of 1.3050/1.3220’. While we continue to hold the same view, we now expect a narrower range of 1.3065/1.3230.”