Pound Sterling (GBP) is likely to range-trade between 1.3400 and 1.3460. In the longer run, the near-term bias is tilted to the upside, but GBP may not break above 1.3505, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

Near-term bias is tilted to the upside

24-HOUR VIEW: "Yesterday, we expected GBP to 'range-trade between 1.3420 and 1.3470'. GBP subsequently traded in a lower range of 1.3402/1.3458, closing largely unchanged at 1.3433 (-0.08%). There has been no shift in either downward or upward momentum, and we continue to expect range-trading today, most likely between 1.3400 and 1.3460."

1-3 WEEKS VIEW: "Our update from yesterday (21 Jan, spot at 1.3440) remains valid. As highlighted, “the near-term bias is tilted to the upside toward 1.3505, but based on the current momentum, GBP may not break clearly above this level.” On the downside, a breach of 1.3380 (no change in ‘strong support’ level) would indicate that GBP is likely to range-trade instead of trading with an upward bias."