GBP/USD: Likely to trade in a 1.2900/1.3000 range today – UOB Group

Pound Sterling (GBP) is likely to trade in a 1.2900/1.3000 range today vs US Dollar (USD). In the longer run, current price movements are likely part of a range trading phase, expected to be between 1.2850 and 1.3050, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. 

Current price movements are likely part of a range trading phase

24-HOUR VIEW: "We pointed out yesterday that 'the risk is for GBP to test the major support at 1.2850.' We also pointed out that, 'Currently, it is too early to determine if GBP can break clearly below this level.' However, GBP did not test 1.2850. Instead, it rebounded from 1.2872 to 1.2992, closing higher by 0.49% at 1.2949. The sharp rebound appears to be running ahead of itself, and instead of continuing to rise, GBP is more likely to trade in a 1.2900/1.3000 range today." 

1-3 WEEKS VIEW: "Yesterday (27 Mar, spot at 1.2880), we noted, 'there has been a tentative buildup in momentum.' We indicated that 'if GBP breaks and holds below 1.2850, it could lead to a move lower to 1.2790.' We also highlighted that 'the likelihood of GBP breaking clearly below 1.2850 will remain intact as long as it remains below 1.2960 (‘strong resistance’ level).' GBP then rebounded above 1.2960, reaching a high of 1.2992. The buildup in momentum has faded. The current price movements are likely part of a range trading phase, expected to be between 1.2850 and 1.3050."