GBP/USD: Likely to trade in a range between 1.3220 and 1.3320 - UOB Group

Current price action is non-trending; Pound Sterling (GBP) is likely to trade in a range between 1.3220 and 1.3320. In the longer run, buildup in momentum has faded; GBP is likely to trade in a 1.3140/1.3405 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Buildup in momentum has faded

24-HOUR VIEW: "Yesterday, we indicated that GBP 'could continue to rebound.' However, we pointed out, 'as conditions are approaching overbought, any further advance is likely limited to a test of 1.3340.' We also pointed out that 'The major resistance at 1.3405 is not expected to come into view.' While GBP rose more than expected to 1.3361, it pulled back sharply to close lower by 0.33% at 1.3259. The contracting moving average envelope indicates that the current price action is non-trending. In other words, GBP is likely to trade in a range today, expected to be between 1.3220 and 1.3320."

1-3 WEEKS VIEW: "Our update from yesterday (14 May, spot at 1.3300) still stands. As highlighted, the recent buildup in downward momentum has faded. The current price movements are part of a range trading phase, and GBP is likely to trade in a 1.3140/1.3405 range for now."