GBP/USD: Likely to trade in a range of 1.3415/1.3470 – UOB Group
Pound Sterling (GBP) is likely to trade in a range of 1.3415/1.3470. 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: "Following GBP’s rise to a high of 1.3455 on Monday, we indicated yesterday, Tuesday, that 'there has been a slight increase in upward momentum, and today, there is a chance for GBP to test 1.3465.' However, we stated that 'based on the current momentum, any further advance is unlikely to threaten the major resistance at 1.3525.' We also stated that 'support levels are at 1.3415 and 1.3395.' Our view turned out to be correct, as GBP dipped briefly to 1.3414, rose to 1.3467, and then pulled back to close modestly higher (1.3448, +0.13%). There has been no further increase in momentum. Today, we expect GBP to range-trade, most likely in a range of 1.3415/1.3470."
1-3 WEEKS VIEW: "There is not much to add to our update from yesterday (30 Sep, spot at 1.3435). As highlighted, 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'."
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