GBP/USD: Likely to trade in a 1.2310/1.2550 range – UOB Group

The Pound Sterling (GBP) could weaken; any decline is not expected to reach the major support at 1.2310. For the time being, GBP is likely to trade in a 1.2310/1.2550 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. 

GBP is not expected to reach the major support at 1.2310

24-HOUR VIEW: "We indicated last Friday that the outlook for GBP 'is mixed'. We were of the view that it could trade in a choppy manner, likely between 1.2390 and 1.2500.' In NY trade, GBP popped to a high of 1.2490 and then plummeted to 1.2377. There has been a tentative buildup in momentum, but while GBP could weaken today, any decline is not expected to reach the major support at 1.2310 (minor support is at 1.2350). Resistance is at 1.2435; a breach of 1.2465 would indicate that GBP is not weakening further." 

1-3 WEEKS VIEW: "Last Friday (09 Feb, spot at 1.2440), we indicated that 'for the time being, GBP is likely to trade in a 1.2310/1.2550 range.' There is no change in our view."