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GBP/USD: Expected to trade in a sideways range of 1.2885/1.2945 – UOB Group

Pound Sterling (GBP) is expected to trade in a sideways range of 1.2885/1.2945 vs US Dollar (USD). In the longer run, current price movements are likely part of a range trading phase, expected to be between 1.2850 and 1.3050, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Current price movements are likely part of a range trading phase

24-HOUR VIEW: "We pointed out yesterday that GBP 'is under mild downward pressure.' We expected GBP to edge lower, but we were of the view that 'any decline is likely limited to a test of 1.2880.' Our view turned out to be correct, as GBP dropped to a low of 1.2880 and then rebounded to end the day little changed at 1.2923 (+0.04%). The mild downward pressure appears to have faded. Today, we expect GBP to trade in a sideways range of 1.2885/1.2945."

1-3 WEEKS VIEW: "Our most recent narrative was from last Friday (28 Mar, spot at 1.2950), wherein 'the current price movements are likely part of a range trading phase, expected to be between 1.2850 and 1.3050.' There is no change in our view."

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