GBP/USD: Likely to trade in a range of 1.3455/1.3530 – UOB Group

Pound Sterling (GBP) is likely to trade in a range of 1.3455/1.3530. In the longer run, current price movements still appear to be part of a range trading phase, likely between 1.3400 and 1.3600, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Current price movements seem to be part of a range trading phase

24-HOUR VIEW: "Yesterday, we expected GBP to 'trade with a downward bias toward 1.3395.' However, we pointed out, 'a sustained break below this level seems unlikely.' Our view was incorrect, as after dropping to 1.3417, GBP rebounded to close at 1.3490 (+0.23%). The slight increase in momentum is not enough to suggest further rise. Today, GBP is more likely to trade in a range of 1.3455/1.3530."

1-3 WEEKS VIEW: "In the early Asian session yesterday (29 May, spot at 1.3435), we indicated that 'the slight increase in downward momentum is likely to lead to GBP trading in a lower range of 1.3330/1.3530.' We did not expect the subsequent strong rebound that reached 1.3507. The mild downward momentum has faded with the rebound, and upward momentum has increased slightly. That said, the current price movements still appear to be part of a range trading phase, albeit a higher one, between 1.3400 and 1.3600."