Slowing downward momentum suggests Pound Sterling (GBP) is likely to continue to trade in a range, expected to be between 1.3030 and 1.3090. In the longer run, GBP is still negative, but further downside may be limited. The next level to monitor is 1.2960, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Further downside may be limited

24-HOUR VIEW: "GBP plummeted to a low of 1.3012 two days ago. Yesterday, when it was at 1.3025, we stated that 'there is a chance for GBP to break below 1.3000, but given the deeply oversold conditions, any further decline is unlikely to reach the next support at 1.2960'. However, GBP traded in a relatively narrow range between 1.3011 and 1.3055. Slowing downward momentum suggests that GBP is likely to continue to trade in a range today, expected to be between 1.3030 and 1.3090."

1-3 WEEKS VIEW: "In our update from yesterday (05 Nov, spot at 1.3025), we highlighted that GBP 'is still negative, but further downside may be limited'. We also indicated that 'the next level to monitor is 1.2960'. Our view remains unchanged. On the upside, if GBP breaks above 1.3120 (no change in ‘strong resistance’ level from yesterday), it would indicate that the weakness in GBP which started more than two weeks ago has come to an end."