The British Pound (GBP) is expected to maintain a range-bound trading pattern, with no significant upward or downward momentum. UOB Group’s FX analysts, Quek Ser Leang and Lee Sue Ann, forecast the GBP to trade between 1.2630 and 1.2705 over the next 24 hours. In the longer term, the outlook for GBP has turned neutral, with expectations for a range between 1.2580 and 1.2750.
Short-Term Outlook: Range Trading Continues
The GBP saw a sharp drop to 1.2619 earlier this week, but rebounded shortly after. Yesterday, analysts noted that the drop seemed exaggerated and anticipated a trading range between 1.2620 and 1.2710. However, the pair traded within an even narrower range of 1.2638 to 1.2700, closing slightly higher at 1.2673, up by 0.12%. With no significant momentum in either direction, the GBP is expected to continue trading within a tight range, likely between 1.2630 and 1.2705 today.
Medium-Term Forecast: Neutral Outlook Remains
Looking at the next few weeks, the outlook for the GBP remains neutral. The pair is expected to trade within a broader range of 1.2580 to 1.2750, reflecting a balanced market with no major shifts in sentiment. This follows the analysts’ revision of their outlook from positive to neutral on December 3, when GBP was at 1.2660.
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