GBP/USD: Likely to edge lower within a lower range of 1.3310/1.343 – UOB Group

Pound Sterling (GBP) is likely to edge lower within a lower range of 1.3310/1.3435, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

GBP is unlikely to break clearly below 1.3310

24-HOUR VIEW: "Yesterday, we were of the view that GBP 'is likely to trade in a range between 1.3385 and 1.3435.' The subsequent price movements did not turn out as expected, with GBP fluctuating between 1.3362 and 1.3416. There has been a slight increase in downward momentum. Today, GBP could edge lower toward 1.3340. Based on the current momentum, it is unlikely to break clearly below this level. Resistance levels are at 1.3395 and 1.3410."

1-3 WEEKS VIEW: "In our most recent narrative from last Friday (17 Oct, spot at 1.3440), we indicated that 'the upside risk is building, and if GBP breaks clearly above 1.3475, it could rise further to 1.3505, potentially testing 1.3530.' Yesterday, GBP fell to a low of 1.3362. Although our ‘strong support’ level at 1.3360 has not been clearly breached yet, upward momentum has largely faded. Downward momentum has increased slightly, but rather than a continued decline, GBP is likely to edge lower within a lower range of 1.3310/1.3435. In other words, GBP is unlikely to break clearly below 1.3310."