The Pound Sterling (GBP) is likely to trade sideways, probably in a range of 1.3035/1.3085. In the longer run, there has been no further increase in momentum; a breach of 1.3125 would suggest that 1.3000 is out of reach, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Breach of 1.3125 to suggest that 1.3000 is out of reach

24-HOUR VIEW: “We highlighted yesterday that ‘provided that GBP remain below 1.3090 with minor resistance at 1.3070, it is likely to decline.’ We added, ‘the major support at 1.3000 is probably out of reach (there is another support level at 1.3025).’ GBP subsequently declined to 1.3031 before rebounding to close largely unchanged (1.3061, -0.05%). The price movements did not result in any increase in downward momentum, and GBP is likely to trade sideways today, probably in a range of 1.3035/1.3085.”