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.”