Instead of weakening, the Pound Sterling (GBP) is more likely to trade in a 1.2620/1.2710 range. In the longer run, outlook for GBP has turned neutral; it is likely to trade between 1.2580 and 1.2750, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Outlook for GBP has turned neutral

24-HOUR VIEW: “Last Friday, GBP soared to a high of 1.2750. Yesterday, we indicated that ‘The sharp rise appears to be overdone, and instead of continuing to strengthen today, GBP is more likely to trade in a 1.2670/1.2745 range.’ However, GBP plummeted to a low of 1.2619, rebounding strongly to close at 1.2657 (-0.66%). This time around, the sharp drop seems overdone. In other words, instead of weakening, GBP is more likely to trade in a 1.2620/1.2710 range.”