Pound Sterling (GBP) is expected to trade within a range of 1.3415 to 1.3470. Over the longer term, GBP is likely to fluctuate between 1.3360 and 1.3525, according to FX analysts Quek Ser Leang and Peter Chia from UOB Group.
GBP likely to trade in a range
24-hour view: Following GBP’s rise to 1.3455 on Monday, UOB noted on Tuesday that “there has been a slight increase in upward momentum, and today there is a chance for GBP to test 1.3465.” The analysts added that “based on the current momentum, any further advance is unlikely to threaten the major resistance at 1.3525” and highlighted support at 1.3415 and 1.3395.
GBP subsequently dipped to 1.3414, climbed to 1.3467, and closed modestly higher at 1.3448 (+0.13%). With no further acceleration in momentum, UOB expects GBP to continue range-bound trading today, likely between 1.3415 and 1.3470.
1-3 weeks view
UOB’s analysts indicated there is little change from their previous update (30 Sep, spot at 1.3435). The recent weakness in GBP has stabilised, and the pair is likely to trade in a broader range of 1.3360 to 1.3525 over the coming weeks.
