According to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann, there has been a slight increase in momentum in the Pound Sterling (GBP) market. They predict that GBP is expected to drift lower, but any decline is unlikely to reach the key level of 1.2850.
Analysis of GBP Movement
In the 24-hour view, GBP was expected to trade in a range of 1.2905/1.2955, but it ended up trading in a lower and wider range of 1.2889/1.2934. The closing price was at 1.2906 (-0.19%), indicating a soft note. Despite the slight increase in momentum, any decline in GBP is unlikely to reach 1.2850, with another support level at 1.2875. On the upside, breaching 1.2935 with minor resistance at 1.2920 would suggest that the current downward pressure has eased.
In the 1-3 weeks view, GBP has entered a consolidation phase and is likely to trade between 1.2850 and 1.3020. The recent advance in GBP has come to an end, leading to a relatively quiet trading period over the past few days.
Impact on Finances
For investors and individuals involved in GBP trading, understanding the expected movement of the currency is crucial. While GBP is expected to drift lower, the key level of 1.2850 is unlikely to be reached. This information can help investors make informed decisions regarding their trades and financial strategies.