Pound Sterling (GBP) is still trading in a range vs US Dollar (USD), expected to be between 1.2750 and 1.2870. In the longer run, GBP could decline further; it is unclear if it can reach the next major support at 1.2580, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
GBP can decline further
24-HOUR VIEW: “We expected GBP to ‘trade in a range between 1.2740 and 1.2860’ yesterday. Our view was not wrong, as GBP traded in a range of 1.2743/1.2860, closing at 1.2830 (+0.50%). The price action still appears to be part of a range-trading phase. Today, we expect GBP to trade between 1.2750 and 1.2870.”
1-3 WEEKS VIEW: “In our most recent narrative from Tuesday (08 Apr, spot at 1.2760), we highlighted that GBP ‘could decline further, but it is unclear if it can reach the next major support at 1.2580.’ GBP traded mostly in a range over the past couple of days, and there is no change in our view. Overall, only a breach of 1.2925 (‘strong resistance’ level was at 1.2950 yesterday) would suggest that GBP is not declining further.”
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