Currency strategists at UOB Group foresee the Pound Sterling (GBP) settling into a tight trading band, with expectations leaning towards stability rather than further gains or losses in the near term.
In their 24-hour view, UOB Group noted, “After yesterday’s robust rebound, GBP is expected to consolidate today within a range, likely between 1.2650 and 1.2705. The earlier rebound appears to have exhausted its momentum, suggesting limited upside potential.”
Looking at a broader 1-3 weeks perspective, the strategists commented, “Despite recent volatility, GBP’s momentum has slowed, indicating a reduced likelihood of weakening towards 1.2600. While the resistance level at 1.2705 remains intact for now, a breach of this level would suggest a stabilization in GBP weakness observed since early last week, potentially leading to a period of range-bound trading.”
Overall, amidst fluctuating market conditions, UOB Group advises that GBP is more likely to consolidate within the identified range of 1.2650 to 1.2705 in the immediate term, reflecting a cautious stance among traders awaiting clearer directional signals.
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