There is a chance for Pound Sterling (GBP) to test 1.3465; major resistance at 1.3525 is unlikely to come under threat. In the longer run, GBP is likely to trade in a range between 1.3360 and 1.3525, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Major resistance at 1.3525 is unlikely to come under threat

24-HOUR VIEW: "Our view for GBP to 'trade in a range between 1.3375 and 1.3430' yesterday was incorrect, as GBP rose to a high of 1.3455. There has been a slight increase in upward momentum, and today, there is a chance for GBP to test 1.3465. Based on the current momentum, any further advance is unlikely to threaten the major resistance at 1.3525. On the downside, support levels are at 1.3415 and 1.3395."

1-3 WEEKS VIEW: "We have held a negative GBP view since the middle of the month. Following the rebound in GBP last Friday, we highlighted yesterday (29 Sep, spot at 1.3405) that 'downward momentum is starting to slow, but only a breach of 1.3445 (‘strong resistance’ level) would indicate that the weakness in GBP has stabilised. GBP subsequently rose to a high of 1.3455. From here, we expect GBP to range-trade, most likely between 1.3360 and 1.3525'."