GBP/USD: Upward momentum is starting to slow – UOB Group
Pound Sterling (GBP) is expected to trade between 1.3125 and 1.3175. In the longer run, upward momentum is starting to slow; a breach of 1.3105 would indicate that GBP is likely to range-trade, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Pound Sterling (GBP) is expected to trade between 1.3125 and 1.3175. In the longer run, upward momentum is starting to slow; a breach of 1.3105 would indicate that GBP is likely to range-trade, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Below 1.3105, GBP is likely to range-trade

24-HOUR VIEW: "We expected GBP to 'trade between 1.3125 and 1.3185' yesterday. GBP subsequently traded in a narrower range than expected (1.3135/1.3176). The price action provides no fresh clues, and we continue to expect GBP to trade in a range today, most likely between 1.3125 and 1.3175."

1-3 WEEKS VIEW: "Last Friday (14 Nov, spot at 1.3160), we were of the view that GBP 'could test 1.3240'. However, we pointed out that 'based on the current momentum, the likelihood of a clear break above this level is not high'. After GBP traded sideways for a couple of days, we highlighted yesterday that 'the buildup in upward momentum is starting to slow, and a breach of 1.3105 (‘strong support’ level) would indicate that GBP is more likely to range-trade rather than head higher to test 1.3240'. We continue to hold the same view for now."

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