Downward momentum has eased with the rebound; Pound Sterling (GBP) is likely to trade in a sideways range of 1.3330/1.3380. In the longer run, GBP is likely to edge lower within a lower range of 1.3310/1.3435, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

GBP is likely to edge lower within a lower range

24-HOUR VIEW: "We expected GBP to 'edge lower toward 1.3340' yesterday, but we pointed out that 'it is unlikely to break clearly below this level.' Although GBP fell more than expected to 1.3311, it rebounded strongly from the low to close at 1.3357, down by 0.13%. Downward momentum has eased with the rebound. Today, we expect GBP to trade sideways, most likely within a range of 1.3330/1.3380."

1-3 WEEKS VIEW: "Yesterday (22 Oct, spot at 1.3370), we highlighted that 'downward momentum has increased slightly, but rather than a continued decline, GBP is likely to edge lower within a lower range of 1.3310/1.3435.' We also highlighted that GBP 'is unlikely to break clearly below 1.3310.' GBP subsequently dipped to 1.3311 and then rebounded. Downward momentum has increased further, but it is not sufficient to indicate a sustained decline just yet. In other words, we continue to hold the same view for now."