Pound Sterling (GBP) is expected to consolidate in a range between 1.2450 and 1.2550. In the longer run, GBP is expected to trade in a range, likely between 1.2420 and 1.2620, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

GBP is expected to trade in a range

24-HOUR VIEW: “GBP soared by 0.79% yesterday, closing at 1.2522. The rapid rise appears to be excessive. Today, instead of continuing to rise, GBP is more likely to consolidate, expected to be between 1.2450 and 1.2550.”

1-3 WEEKS VIEW: “GBP dropped to a low of 1.2353 last week. Yesterday, it rebounded strongly, reaching a high of 1.2550. Although downward momentum has faded with the rebound, it is premature to expect a sustained advance. For the time being, we expect GBP to trade in a range, likely between 1.2420 and 1.2620.”