The Pound Sterling (GBP) is expected to drift lower; given the mild downward pressure, any decline is unlikely to break the support at 1.2710, and the chance of GBP dropping below 1.2665 is low, UOB Group FX analysts Quek Ser Leang and Peter Chia note.
A sustained break below 1.2710 is unlikely
24-HOUR VIEW: “Last Friday, GBP traded in a range of 1.2727/1.2773, closing largely unchanged (1.2756, 0.04%). Despite the quiet price action, there has been a slight increase in downward momentum. Today, we expect GBP to drift lower. Given the mild downward pressure, any decline is unlikely to break the support at 1.2710. On the upside, resistance levels are at 1.2780 and 1.2800.”
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