Highlights;
- The current price movements suggest GBP is in a range-trading phase, with expectations for it to trade between 1.3450 and 1.3505 in the near term.
- Over the past 24 hours, GBP pulled back sharply to a low of 1.3447 before rebounding slightly to close at 1.3479, with no clear downward momentum.
- In the longer term, further GBP strength is possible, but it remains uncertain if there is enough momentum to reach 1.3595.
- As long as the 1.3425 support level holds, there is still a chance for GBP to edge higher.
The current price movements for the pound Sterling (GBP) appear to be within a range-trading phase, likely fluctuating between 1.3450 and 1.3505. While further GBP strength is possible in the long term, UOB Group’s FX analysts Quek Ser Leang and Peter Chia suggest that it is uncertain whether there is enough momentum for the currency to reach 1.3595.
GBP Still Has Potential to Move Higher
24-Hour Outlook:
GBP experienced a sharp decline, reaching a low of 1.3447 on Monday. Despite this drop, there has been no significant increase in downward momentum. Instead of continuing to weaken, GBP is more likely to trade within a range, as we noted yesterday. On Tuesday, GBP briefly dipped to 1.3435 before rebounding to 1.3494 and closing slightly higher at 1.3479, up 0.19%. For today, we expect GBP to remain within a range, likely between 1.3450 and 1.3505.
1-3 Week Outlook:
As mentioned two days ago (when GBP was trading at 1.3515), while further GBP strength is possible, it remains unclear if there is sufficient momentum to push the currency to 1.3595. We also noted that if GBP breaks below 1.3425, it would likely enter a sideways trading phase rather than continuing to strengthen. Although GBP has not made further upward progress, as long as it holds above 1.3425, there is still a chance for it to edge higher.
