GBP Stuck in Narrow Range Against USD

UOB's analysts Quek Ser Leang and Lee Sue Ann point out that the British Pound has been trading in a narrow range against the US Dollar, with prices contained within 1.3493-1.3515. Despite this quiet price action, they see some scope for the Pound to edge higher but still expect it to be capped within a defined band of 1.3490-1.3535.

Looking at the recent price movements, GBP had risen to a high of 1.3530 on Monday and was expected to continue rising, but the subsequent price action did not unfold as anticipated. The Pound traded in a narrow sideways range, closing marginally higher by 0.01% at 1.3509.

In their one to three week view, UOB's analysts have held a positive GBP view since last Monday and expect it to test 1.3555. However, they believe that any advance beyond this level is unlikely without a sustained rise above the 'strong support' level of 1.3460.