Set to break above 1.3000 – UOB Group

The Pound Sterling (GBP) is expected to trade sideways between 1.2930 and 1.2990. In the longer run, downward momentum is slowing; should GBP break above 1.3000, it would indicate that GBP is not declining further, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

GBP expected to trade between 1.2930 and 1.2990

24-HOUR VIEW: “GBP traded sideways between 1.2959 and 1.2998 last Friday, narrower than our expected range of 1.2930/1.3000. The price action did not result in an increase in either downward or upward momentum. Today, GBP is expected to continue to trade sideways, probably between 1.2930 and 1.2990.”

1-3 WEEKS VIEW: “In our most recent narrative from last Thursday (24 Oct, spot at 1.2915), we indicated that ‘The price action indicates GBP could decline further to 1.2860.’ Since then, GBP has not been able to make further headway on the downside. Downward momentum is slowing, and should GBP break above 1.3000 (no change in ‘strong resistance’ level), it would indicate that GBP is not declining further.”