Pound Sterling (GBP) is likely to consolidate in a range of 1.3455/1.3525. In the longer run, GBP is likely to trade in a range between 1.3360 and 1.3525, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
GBP is likely to trade in a range
24-HOUR VIEW: “We expected GBP to “trade in a range of 1.3415/1.3470” yesterday. We did not anticipate the increase in volatility, as GBP rose sharply to a high of 1.3527 and then retreated to close at 1.3477 (+0.21%). The brief advance did not result in any significant increase in upward momentum, and GBP is unlikely to rise much further. Today, GBP is more likely to consolidate in a range of 1.3455/1.3525.”
1-3 WEEKS VIEW: “Two days ago (30 Sep, spot at 1.3435), we highlighted that the recent ‘weakness in GBP has stabilised,’ and we were of the view that GBP ‘is likely to trade in a range between 1.3360 and 1.3525.’ Yesterday, GBP rose briefly and slightly above 1.3525 (high was 1.3527), before retreating quickly. There has been no clear increase in upward momentum, and we continue to expect GBP to trade between 1.3360 and 1.3525 for now.”
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