The Pound Sterling (GBP) is expected to trade sideways between 1.2780 and 1.2855. Instead of trading in a range, GBP is likely to rebound further, potentially to 1.2950, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Bulls to test the 1.2855 resistance

24-HOUR VIEW: “Our expectation for GBP to break above 1.2900 did not turn out, as it traded between 1.2812 and 1.2868, closing lower by 0.27% (1.2827). The current price movements are likely part of a sideways trading phase. Today, GBP is expected to trade between 1.2780 and 1.2855.”

1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (14 Aug, spot at 1.2865). As indicated, instead of trading in a range, GBP is likely to rebound further, potentially to 1.2950. However, note that there is another resistance level at 1.2900. Should GBP break below 1.2780 (no change in ‘strong support’ level), it would indicate that GBP is still trading in a range.”