Likely to trade sideways between 1.3410 and 1.3460 – UOB Group

Momentum indicators are turning flat; Pound Sterling (GBP) could trade sideways between 1.3410 and 1.3460. In the longer run, GBP is likely in a range-trading phase between 1.3390 and 1.3520, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

GBP is likely in a range-trading phase

24-HOUR VIEW: “Two days ago, GBP rose to 1.3495 and then pulled back. Yesterday, we indicated that ‘the pullback has scope to extend, but the major support at 1.3390 is unlikely to come under threat’. Instead of extending its pullback, GBP traded sideways between 1.3420 and 1.3462, closing at 1.3448, up by 0.19%. Momentum indicators are turning flat, and GBP could continue to trade sideways today, most likely between 1.3410 and 1.3460.”

1-3 WEEKS VIEW: “We highlighted two days ago (13 Jan, spot at 1.3465) that the recent price action suggests that GBP ‘is likely in a range-trading phase, probably between 1.3390 and 1.3520’. We continue to hold the same view for now.”