GBP Forecast: Pound Sterling Likely to Trade in Range between 1.2740 and 1.2840
Leading FX analysts Quek Ser Leang and Lee Sue Ann from UOB Group predict that the Pound Sterling (GBP) is expected to trade within a range of 1.2740 to 1.2840. Despite recent weakness, downward momentum has slowed, indicating limited potential for further GBP depreciation.
Short-term Outlook
According to the 24-hour view, GBP experienced a rapid rise to a high of 1.2840 after initially weakening to 1.2708. The currency closed at 1.2805, showing signs of overbought conditions. Instead of continuing its upward trend, GBP is likely to consolidate within the range of 1.2740 to 1.2840 in the near term.
Medium-term Forecast
Looking ahead, analysts maintain a negative outlook on GBP since late July when it was trading at 1.2855. Despite a recent plunge, GBP rebounded and almost broke through the strong resistance level of 1.2840. The downward momentum has slowed, suggesting limited downside potential with a possible retest of the 1.2710 level. However, a breach above 1.2840 could signal a reversal in GBP weakness.
Analysis and Implications
For investors and traders, the forecast for GBP indicates a potential trading range between 1.2740 and 1.2840 in the short term. While the currency may face some downward pressure, further weakness is expected to be limited. A breach above the key resistance level of 1.2840 could signal a shift in GBP’s trajectory. It is important to monitor these levels for potential trading opportunities and risk management strategies.