There is a chance for Pound Sterling (GBP) to test 1.3445; the major resistance at 1.3475 is unlikely to come into view. In the longer run, GBP is likely to range-trade within a range of 1.3320/1.3475, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
GBP is likely to range-trade within a range
24-HOUR VIEW: “GBP plummeted to a low of 1.3249 on Tuesday and then rebounded. Yesterday, Wednesday, we highlighted that ‘the rebound from oversold conditions suggests that instead of continuing to decline, GBP is more likely to trade in a range today, expected to be between 1.3290 and 1.3365.’ Instead of trading in a range, GBP rose, reaching a high of 1.3408. The advance has gathered some momentum, albeit not much. Today, there is a chance for GBP to test 1.3445. The major resistance at 1.3475 is unlikely to come into view. To keep the mild momentum going, GBP must hold above 1.3360, with minor support at 1.3375.”
1-3 WEEKS VIEW: “We turned negative on GBP in the middle of last week. Tracking the subsequent price movements, we indicated two days ago (13 Oct, spot at 1.3350) that ‘downward momentum has slowed somewhat, but there is still a chance for GBP
to decline to 1.3200.’ Yesterday, GBP rose and broke above our ‘strong resistance’ level of 1.3390. Downward momentum has eased, and GBP is likely to range-trade for now, expected to be within a range of 1.3320/1.3475.”
