GBP/USD: To decline GBP must break and remain below 1.2845 – UOB Group

The Pound Sterling (GBP) is likely to trade in a range, probably between 1.2890 and 1.2980. In the longer run, GBP must break and remain below 1.2845 before a sustained decline can be expected, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Rangebound between 1.2890 and 1.2980 for the time being

24-HOUR VIEW: “After GBP dropped sharply last Thursday, we highlighted on Friday that ‘The sharp drop appears to be overdone, and GBP is unlikely to weaken further.’ We held the view that GBP ‘is more likely to trade in a range, probably between 1.2860 and 1.2950.’ GBP did not weaken further, but instead of trading in a range, it rose to 1.2980, then pulled back to close at 1.2921. It opened higher today. The price action provides no fresh clues, and we continue to expect GBP to trade in a range, probably between 1.2890 and 1.2980.”