GBP/USD: Likely to continue to weaken to 1.2565 – UOB Group

The Pound Sterling (GBP) is expected to trade in a 1.2625/1.2705 range. In the longer run, GBP is likely to continue to weaken to 1.2565, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann notes.

GBP is expected to trade in a 1.2625/1.2705 range

24-HOUR VIEW: “Last Friday, GBP dropped sharply to 1.2598. Yesterday (Monday), we indicated that ‘there is scope for GBP to edge lower to 1.2590.’ Our view turned out to be incorrect, as GBP rebounded from 1.2614 to 1.2686. GBP then closed at 1.2679 (+0.48%). The price action is likely part of a range trading phase. Today, we expect GBP to trade in a 1.2625/1.2705 range.”

1-3 WEEKS VIEW: “Yesterday (18 Nov, spot at 1.2620), we highlighted, GBP is likely to continue to weaken to 1.2565. Although the subsequent rebound has slowed the momentum somewhat, only a breach of 1.2745 (no change in ‘strong resistance’ level) would mean that the weakness that started early last week has stabilised.”