GBP/USD: Any decline is likely limited to a test of 1.2880 – UOB Group

Pound Sterling (GBP) is under mild downward pressure vs US Dollar (USD); it is expected to edge lower, but any decline is likely limited to a test of 1.2880. In the longer run, current price movements are likely part of a range trading phase, expected to be between 1.2850 and 1.3050, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.  

GBP is under mild downward pressure

24-HOUR VIEW: "GBP dropped to 1.2886 yesterday, closing slightly lower at 1.2918 (-0.10%). The price action has resulted in a modest increase in downward momentum. Today, we expect GBP to edge lower, but as momentum is not strong, any decline is likely limited to a test of 1.2880. The major support at 1.2850 is unlikely to come under threat. Resistance is at 1.2940; a breach of 1.2960 would indicate that the current mild downward pressure has faded." 

1-3 WEEKS VIEW: "Our most recent narrative was from last Friday (28 Mar, spot at 1.2950), wherein 'the current price movements are likely part of a range trading phase, expected to be between 1.2850 and 1.3050.' There is no change in our view."