GBP/USD: Two-week GBP strength has ended – UOB Group
|Pound Sterling (GBP) is expected to trade in a range between 1.2570 and 1.2630. In the longer run, two-week GBP strength has ended; for the time being, it is likely to trade between 1.2520 and 1.2670, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Likely to trade between 1.2520 and 1.2670
24-HOUR VIEW: "After GBP dropped sharply last Thursday, we indicated that 'while the rapid drop could extend, oversold conditions suggest any decline is likely part of a lower 1.2570/1.2640 range.' Although GBP traded in a lower range than expected (1.2560/1.2621), there has been no increase in downward momentum. Today, we continue to expect GBP to trade in a range, likely between 1.2570 and 1.2630."
1-3 WEEKS VIEW: "We highlighted last Friday (28 Feb, spot at 1.2600) that 'the two-week GBP strength has ended.' We also highlighted that 'the current price movements are likely part of a range trading phase, and for the time being, we expect GBP to trade between 1.2520 and 1.2670.' There is no change in our view."
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