Pound Sterling (GBP) may decline toward 1.3400; a clear break below this level appears unlikely. In the longer run, GBP is likely to trade in a range between 1.3360 and 1.3525, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Clear break below 1.3400 appears unlikely

24-HOUR VIEW: "GBP fell to a low of 1.3402 last Thursday. On Friday, we were of the view that GBP 'may retest the 1.3400 level.' Our view did not materialise, as GBP traded in a range of 1.3430/1.3488. GBP gapped lower at the open today, and it may continue to decline toward 1.3400. Based on the current momentum, a clear break below this level appears unlikely. On the upside, any recovery is likely to hold below 1.3475, with minor resistance at 1.3455."

1-3 WEEKS VIEW: "In our most recent narrative was from last Tuesday (30 Sep, spot at 1.3435), we held the view that GBP 'is likely to trade in a range between 1.3360 and 1.3525.' While there has been a slight increase in downward momentum, it is not sufficient to indicate a sustained decline. For the time being, we will continue to expect GBP to trade in a range between 1.3360 and 1.3525."