The Pound Sterling (GBP) is anticipated to trade within a sideways range of 1.2770 to 1.2820, with upside risk remaining a key factor to watch, according to UOB Group FX strategists Quek Ser Leang and Peter Chia. The critical level to monitor is 1.2860.
24-Hour View:
Recently, GBP rose to 1.2846 before pulling back. Analysts previously highlighted that overbought conditions and slowing momentum suggested GBP was unlikely to strengthen further, expecting a sideways trading range of 1.2780 to 1.2840. This prediction held, with GBP trading in a narrower range of 1.2778 to 1.2821. Continued sideways trading is expected, though the slightly softened underlying tone points to a new range of 1.2770 to 1.2820.
1-3 Weeks View:
The analysis from Monday (spot at 1.2805) remains valid. The risk for GBP continues to be on the upside, with the critical level to watch being 1.2860. Conversely, if GBP breaks below the strong support level of 1.2750, it would indicate that the upside risk observed since last Thursday has dissipated.
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