Momentum indicators have become flat. The British pound could trade sideways between 1.3410 and 1.3460. In the longer term, the British pound is likely to be trading between 1.3390 and 1.3520, UOB Group FX analysts Kwek Ser Liang and Peter Chia noted.
The British pound is likely to be in a range trading phase
24-hour view: “Two days ago, the British pound rose to 1.3495 and then retreated. Yesterday, we noted that ‘the pullback has room to expand, but key support at 1.3390 is unlikely to be threatened.’” Instead of extending its decline, the British pound traded sideways between 1.3420 and 1.3462, closing at 1.3448, rising by momentum indicators turning level. 0.19%, and the British pound may continue to trade sideways today, most likely between 1.3410 and 1.3460.
1-3 week view: “We highlighted two days ago (13 January, spot at 1.3465) that recent price action suggests that GBP is ‘likely to be in a range trading phase, perhaps between 1.3390 and 1.3520’. We still hold the same view for now.”
