Pound Sterling (GBP) could trade between 1.3065 and 1.3125. In the longer run, there is room for GBP to test the significant support level at 1.3000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Room for GBP to test 1.3000
24-HOUR VIEW: "Following last Thursday’s price action, we indicated on Friday that 'the outlook is mixed'. We also indicated that GBP 'could trade between 1.3045 and 1.3120'. GBP then traded within a range of 1.3039/1.3109, closing at 1.3099 (+0.23%). We are not able to derive much from the price action. Today, GBP could trade between 1.3065 and 1.3125."
1-3 WEEKS VIEW: "Last Thursday (20 Nov, spot at 1.3060), we highlighted that 'there is room for GBP to test the significant support level at 1.3000'. Since then, GBP has not made much headway on the downside. While we maintain our view for now, downward momentum is starting to slow, and if GBP breaks above 1.3140 (‘strong resistance’ level previously at 1.3150), it would indicate that GBP is likely to trade in a range rather than testing 1.3000."
