The Pound Sterling (GBP) is expected to trade in a 1.3145/1.3215 range, according to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann. The rapid slowdown in momentum suggests that the likelihood of GBP rising to 1.3320 has diminished.
Rapid slowdown in momentum
24-HOUR VIEW: Despite a recent increase in downward momentum, GBP has not been able to break the strong support at 1.3145. Yesterday, GBP weakened more than expected, almost breaching the support level as it reached a low of 1.3146 before closing at 1.3170 (-0.16%). However, downward momentum has not increased significantly, and GBP is expected to trade in a 1.3145/1.3215 range today.
1-3 WEEKS VIEW: The rapid slowdown in upward momentum has raised concerns about GBP’s ability to reach 1.3320. While the strong support level at 1.3145 remains intact, GBP must break and stay above 1.3250 in the next 1 to 2 days to avoid a potential breach of support.
Analysis
In summary, the Pound Sterling is facing a tight trading range with a potential downside risk if it fails to maintain support above 1.3145. Traders should closely monitor the 1.3250 level as a key indicator of GBP’s short-term direction. Overall, the market sentiment is cautious, and investors are advised to stay vigilant in managing their GBP positions.