GBP/USD: Expected to trade in a range between 1.3460 and 1.3530 – UOB Group
|Pound Sterling (GBP) is expected to trade in a range between 1.3460 and 1.3530. In the longer run, the current price movements are likely part of a broad range between 1.3430 and 1.3595, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Current price movements are likely part of a broad range
24-HOUR VIEW: "In the NY session last Friday, GBP jumped to a high of 1.3554 and then pulled back sharply to close at 1.3507 (+0.52%). The sharp pullback has slowed some of the build-up in upward momentum, and GBP is unlikely to rise further. Today, we expect GBP to trade in a range, most likely between 1.3460 and 1.3530."
1-3 WEEKS VIEW: "GBP fell sharply last Tuesday. In our latest update from Wednesday (03 Sep, spot at 1.3390), we indicated that 'while the sharp drop appears excessive, there is room for GBP to weaken further to 1.3305, potentially testing the significant support level near 1.3270.' We added, 'to sustain the downward momentum, GBP must hold below 1.3490.' Our assessments were incorrect, as after dropping to a low of 1.3334, GBP rebounded, and last Friday, it soared to a high of 1.3554. However, coming off the previous steep decline, the sharp rebound did not translate into a meaningful build-up in upward momentum. Overall, we view the current price movements as part of a broad range, likely between 1.3430 and 1.3595."
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