The current price movements still appear to be part of a range-trading phase, likely between 1.3450 and 1.3505. In the longer run, further pound Sterling (GBP) strength is not ruled out, but it is unclear if there is enough momentum for it to reach 1.3595, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

There is still a chance for GBP to edge higher

24-HOUR VIEW: "Price movements still appear to be part of a range-trading phase GBP pulled back sharply and reached a low of 1.3447 on Monday. Yesterday, Tuesday, we highlighted the following: “Despite the sharp decline, there has been no clear increase in downward momentum, and instead of continuing to weaken, GBP is more likely to trade in a range today, probably between 1.3440 and 1.3520.' GBP subsequently dipped briefly to 1.3435, rebounded to 1.3494, and then closed at 1.3479, up slightly by 0.19%. The current price movements still appear to be part of a range-trading phase. Today, we expect GBP to trade between 1.3450 and 1.3505."

1-3 WEEKS VIEW: "Two days ago (25 Aug, spot at 1.3515), we indicated that 'while further GBP strength is not ruled out, it is currently unclear if there is enough momentum for it to reach 1.3595.' We also indicated that 'if GBP breaks below 1.3425, it would mean that it is likely to trade within a range instead of strengthening.' Although GBP has not been able to make further headway to the upside, as long as 1.3425 holds, there is still a chance for GBP to edge higher."