Pound Sterling (GBP) is likely to trade in a range between 1.3385 and 1.3435. In the longer run, if GBP breaks clearly above 1.3475, it could rise further to 1.3505, potentially testing 1.3530, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

GBP is likely to trade in a range for now

24-HOUR VIEW: "GBP traded within a relatively narrow range of 1.3400/1.3442 yesterday before settling at 1.3404 (-0.26%). The price movements provide no fresh clues. Today, we expect GBP to trade in a range between 1.3385 and 1.3435."

1-3 WEEKS VIEW: "We left off last Friday (17 Oct, spot at 1.3440), indicating that 'the upside risk is building, and if GBP breaks clearly above 1.3475, it could rise further to 1.3505, potentially testing 1.3530.' GBP subsequently rose to a high of 1.3471 before easing. While upward momentum has slowed, there is still a chance for GBP to break clearly above 1.3475, provided that it holds above the ‘strong support’ at 1.3360 (no change in level). In other words, we continue to hold the same view."