GBP/USD: Price action appears be consolidative – UOB Group

The Pound Sterling (GBP) is expected to trade in a range between 1.2920 and 1.3000. In the longer run, for the time being, GBP is expected to trade in a 1.2900/1.3030 range, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

GBP is expected to trade in a 1.2900/1.3030 range

24-HOUR VIEW: “We expected GBP to trade in a range between 1.2890 and 1.2980 yesterday. GBP then traded in a narrower and higher range of 1.2935/1.2999. The price action appears be consolidative, and we continue to expect GBP to trade in a range, likely between 1.2920 and 1.3000.”

1-3 WEEKS VIEW: “Last Thursday, GBP plummeted to a low of 1.2845. In our update from Friday (01 Nov, spot at 1.2900), we indicated that ‘While there has been a buildup in momentum, GBP must break and remain below 1.2845 before further sustained decline can be expected.’ We added, ‘The likelihood of GBP breaking clearly below 1.2845 will remain intact, provided that 1.2985 is not breached.’ Yesterday, GBP broke above 1.2985, reaching a high of 1.2999. Downward momentum has faded, and for the time being, GBP is expected to trade in a 1.2900/1.3030 range.”