GBP/USD: Likely to trade in a range between 1.3105 and 1.3175 – UOB Group

Pound Sterling (GBP) is likely to trade in a range between 1.3105 and 1.3175. In the longer run, GBP’s weakness has come to an end; it could recover further, but any advance is likely part of a higher range of 1.3050/1.3220, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

GBP’s weakness has come to an end

24-HOUR VIEW: "Following the strong advance in GBP to a high of 1.3142 last Thursday, we highlighted the following on Friday: 'The sharp and swift rise appears to be overdone. However, GBP could rise further, but any advance is unlikely to break clearly above 1.3175. We do not expect the major resistance at 1.3230 to come into view. Support is at 1.3120; a breach of 1.3095 would indicate that GBP is not rising further'. GBP subsequently dipped to 1.3095, rose to 1.3175 and then closed at 1.3165, up by 0.19%. Upward momentum has slowed, and today, we expect GBP to trade in range, most likely between 1.3105 and 1.3175."

1-3 WEEKS VIEW: "We highlighted last Friday (07 Nov, spot at 1.3140) that the recent GBP weakness 'has come to an end'. We were of the view that GBP 'could recover further but any advance is likely part of a higher range of 1.3050/1.3220'. We continue to hold the same view."