The Pound Sterling (GBP) is expected to trade in a 1.2985/1.3050 range. In the longer run, the breach of the major support at 1.3000 sets the stage for further losses; the levels to monitor are 1.2940 and 1.2900, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notes.

Levels to monitor are 1.2940 and 1.2900

24-HOUR VIEW: “Our expectation for GBP ‘decline further to 1.2940’ did not turn out, as it traded between 1.2971 and 1.3023, closing at 1.3010. The price movements appear to be part of a consolidation phase. Today, we expect GBP to trade in a 1.2985/1.3050 range.”

1-3 WEEKS VIEW: “After GBP breached the major support at 1.3000, we indicated yesterday (17 Oct, spot at 1.2990) that ‘the breach of the major support at 1.3000 sets the stage for further losses.’ We added, ‘the levels to monitor are 1.2940 and 1.2900.’ Our view remains unchanged, even though oversold short-term conditions could lead to a couple of days of consolidation. Overall, only a breach of 1.3080 (no change in ‘strong resistance’ level) would indicate that the weakness from early this month has ended.”