Likely to trade between 1.2630 and 1.2710 – UOB Group

Price action still appears to be part of a range trading phase; the Pound Sterling (GBP) is likely to trade between 1.2630 and 1.2710. In the longer run, downward momentum is beginning to slow; a break above 1.2725 would mean that the major support at 1.2565 is out of reach, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Downward momentum is beginning to slow

24-HOUR VIEW: “GBP traded between 1.2615 and 1.2689 yesterday, closing little changed at 1.2682 (+0.02%). We were expecting it to trade in a 1.2625/1.2705 range. The price action still appears to be part of a range trading phase. Today, we expect GBP to trade between 1.2630 and 1.2710.”

1-3 WEEKS VIEW: “We turned negative in GBP about a week ago (12 Nov), when it was at 1.2875. As we tracked the decline, in our latest narrative from two days ago (18 Nov, spot at 1.2620), we highlighted that GBP ‘is likely to continue to weaken to 1.2565.’ After dropping to a low of 1.2598, GBP has not been able to make further headway on the downside. Downward momentum is beginning to slow, and should GBP break above 1.2725 (‘strong resistance’ level previously at 1.2745), it would mean that the major support at 1.2565 is out of reach this time around.”