GBP/USD: Upward momentum is starting to slow – UOB Group
|Pound Sterling (GBP) is expected to trade between 1.3125 and 1.3185. In the longer run, upward momentum is starting to slow; a breach of 1.3105 would indicate that GBP is likely to range-trade, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
GBP/USD is expected to trade between 1.3125 and 1.3185
24-HOUR VIEW: "Yesterday, we expected GBP to 'trade between 1.3120 and 1.3200'. GBP subsequently traded in a narrower range than expected (1.3137/1.3192). Today, we continue to expect GBP to trade in a range, most likely between 1.3125 and 1.3185."
1-3 WEEKS VIEW "We highlighted last Friday (14 Nov, spot at 1.3160) that 'there has been a tentative buildup in upward momentum', and we held the view that GBP 'could test 1.3240'. However, we pointed out that 'based on the current momentum, the likelihood of a clear break above this level is not high'. Since then, GBP has not been able to make much headway on the upside. The buildup in upward momentum is starting to slow, and a breach of 1.3105 (‘strong support’ level previously at 1.3095) would indicate that GBP is more likely to range-trade rather than head higher to test 1.3240."
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