GBP is expected to range trade - UOB

According to analysts at UOB, GBP is expected to range trade after it traded in a relatively calm manner last Friday within a 1.2799/1.2890 range.

Key Quotes

“The outlook remains mixed and further range trading is expected, albeit likely at a lower range of 1.2770/1.2880.”

“1-3 WEEKS VIEW

Neutral (since 21 Aug 18, spot at 1.2795): Diminished prospect of GBP making fresh 2018 low.

GBP traded in a relatively quiet manner before ending the day lower by -0.42% (NY close of 1.2820). As highlighted last Friday (23 Nov, spot at 1.2875), the prospect for GBP making fresh 2018 low has diminished but only a break of the 1.2950 ‘key resistance’ would indicate that the current downward pressure has eased. Meanwhile, in order to revive the flagging momentum, GBP has to move and stay below 1.2800 or a break of the 1.2950 ‘key resistance’ would not be surprising.”