Pound Sterling (GBP) is expected to trade between 1.3120 and 1.3200. In the longer run, there has been a tentative buildup in momentum, and GBP could test 1.3240, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
GBP/USD might test 1.3240
24-HOUR VIEW: "We expected GBP to 'trade between 1.3120 and 1.3200' last Friday. GBP subsequently traded in an erratic manner, swinging between 1.3109 and 1.3200 before closing slightly lower at 1.3175, down by 0.13%. The price action provides no fresh clues, and today, we continue to expect GBP to trade between 1.3120 and 1.3200."
1-3 WEEKS VIEW: "We highlighted last Friday (14 Nov, spot at 1.3160) that 'there has been a tentative buildup in upward momentum', and we held 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'. We will maintain our view as long as the 'strong support’ at 1.3095 (level remains unchanged from last Friday) is not breached."
