GBP/USD: Bulls strive for a move above 1.2800 – UOB Group

The Pound Sterling (GBP) is expected to trade sideways between 1.2740 and 1.2800. GBP weakness from late last month has stabilised; for the time being, it is expected to trade between 1.2700 and 1.2850, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

A move above 1.2800 is on the cards

24-HOUR VIEW: “Our view for GBP to drift lower yesterday was incorrect. Instead of drifting lower, it traded in a range of 1.2747/1.2794 before settling modestly higher at 1.2766 (+0.11%). The price action did not result in any clear increase in upward momentum. Today, we expect GBP to trade sideways, probably between 1.2740 and 1.2800.”

1-3 WEEKS VIEW: “We turned negative in GBP late last month (see annotations in the chart below). Last Thursday (08 Aug), GBP fell to a low of 1.2665 before rebounding. Yesterday (12 Aug, spot at 1.2750), we indicated that ‘while our ‘strong resistance’ level at 1.2780 has not been breached yet, downward momentum has eased considerably, and the chance of GBP dropping below 1.2665 is low.’ GBP then breached 1.2780, reaching a high of 1.2794. The price action indicates that the weakness in GBP from late last month has stabilised. GBP has likely entered a range trading phase. For the time being, we expect GBP to trade between 1.2700 and 1.2850.”