GBP is expected to trade sideways between 1.2440 and 1.2535. 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: “Our expectation for GBP to ‘consolidate in a range between 1.2450 and 1.2550’ turned out to be incorrect as GBP rose to 1.2575. GBP pulled back sharply from the high to close at 1.2479 (-0.34%). Despite the sharp pullback, there has been no significant increase in downward momentum. Today, we expect GBP to trade sideways, likely between 1.2440 and 1.2535.”

1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (07 Jan, spot at 1.2510). As indicated, we expect GBP to trade in a range between 1.2420 and 1.2620 for the time being.”