The Pound Sterling (GBP) is expected to trade in a sideways range between 1.2725 and 1.2775, but risk for GBP has shifted to the upside. Note that there is a solid resistance level at 1.2805, UOB Group analysts Quek Ser Leang and Lee Sue Ann note.

Next resistance level exists at 1.2805

24-HOUR VIEW: “Yesterday, we held the view that ‘there is room for GBP to retest the 1.2780 level before a pullback can be expected.’ Our expectation did not materialise, as GBP traded in a quiet manner between 1.2740 and 1.2764. The price movements are likely part of a sideways trading phase. Today, we expect GBP to trade in a range of 1.2725 and 1.2775.”

1-3 WEEKS VIEW: “We highlighted yesterday (04 Jul, spot at 1.2745) that ‘the risk for GBP has shifted to the upside.’ We pointed out that ‘there is a solid resistance level at 1.2805, ahead of last month’s high of 1.2860.’ There is no change in our view. The upside risk is intact as long as GBP remains above 1.2685 (‘strong support’ level was at 1.2665 yesterday).”