GBP/USD: Likely to trade in a 1.2900/1.2975 range – UOB Group

Pound Sterling (GBP) is likely to trade in a 1.2900/1.2975 range. In the longer run, to continue to rise, GBP must break and remain above 1.3000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. 

To continue to rise, GBP must break and remain above 1.3000

24-HOUR VIEW: "Following the rise in GBP to 1.2990 on Wednesday, we indicated yesterday (Thursday) that 'there is a chance for GBP to test 1.3000.' However, we pointed out, 'A clear break above this level seems unlikely.' Our view did not materialise as GBP traded in a choppy range of 1.2921/1.2971, closing largely unchanged (1.2951, -0.07%). Momentum indicators are turning flat, and further range trading seems likely today, probably in a 1.2900/1.2975 range." 

1-3 WEEKS VIEW: "Having held a positive outlook in GBP since early this month, we indicated the following yesterday (13 Mar, spot at 1.2960): 'To continue to rise, GBP must break and remain above 1.3000. The chance of GBP breaking clearly above 1.3000, although not high, will remain intact as long as 1.2880 (‘strong support’ level) is not breached.' We continue to hold the same view."