There has been no increase in either downward or upward momentum; the Pound Sterling (GBP) is likely to trade in a 1.2630/1.2705 range. In the longer run, outlook for GBP has turned neutral; it is likely to trade between 1.2580 and 1.2750, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.   

Likely to trade between 1.2580 and 1.2750

24-HOUR VIEW: “Two days ago, GBP fell sharply to 1.2619 before rebounding. Yesterday, we highlighted that ‘the sharp drop seems overdone.’ We also highlighted that ‘instead of weakening, GBP is more likely to trade in a 1.2620/1.2710 range.’ GBP then traded in a narrower range than expected, between 1.2638 and 1.2700, closing at 1.2673, slightly higher by 0.12%. There has been no increase in either downward or upward momentum. Today, we continue to expect range trading, probably between 1.2630 and 1.2705.”

1-3 WEEKS VIEW: “Yesterday (03 Dec), when GBP was at 1.2660, we revised our outlook from positive to neutral. We indicated that GBP ‘is likely to trade in a range, probably between 1.2580 and 1.2750.’ We continue to hold the same view.”