GBP/USD: Likely to trade in a 1.2900/1.2970 range – UOB Group

Pound Sterling (GBP) is likely to trade in a 1.2900/1.2970 range. In the longer run, to continue to rise, GBP must break and remain above 1.3000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. 

To continue to rise, GBP must break and remain above 1.3000

24-HOUR VIEW: "We indicated last Friday that 'momentum indicators are turning flat,' and we expected GBP to 'trade in a 1.2900/1.2975 range.' Our view of range trading was not wrong, even though GBP traded in a narrower range than expected (1.2911/1.2958), closing modestly lower by 0.10% at 1.2938. The price action provides no fresh clues, and we continue to expect GBP to trade in a range, most likely between 1.2900 and 1.2970." 

1-3 WEEKS VIEW: "Our latest narrative was from last Thursday (13 Mar, spot at 1.2955) wherein 'to continue to rise, GBP must break and remain above 1.3000.' Since then, GBP has not been able to make further headway on the upside. However, only a breach of 1.2880 (no change in ‘strong support’ level) would indicate that the GBP strength that started earlier this month (see annotations in the chart below) has run its course."