UOB Group analysts Quek Ser Leang and Peter Chia suggest that current GBP/USD price action is indicative of range-bound trading, anticipated between 1.2740 and 1.2860. Longer-term, a further depreciation of Sterling against the Dollar is foreseen, although the likelihood of reaching the subsequent support level at 1.2580 remains uncertain.
Short-Term Outlook (24 Hours): Previous expectations of a decline to 1.2675 followed by stabilization were not realized. Instead, the pair fluctuated between 1.2725 and 1.2812, ultimately closing higher at 1.2766. Current price dynamics suggest continued range-trading, projected between 1.2740 and 1.2860.
Medium-Term Outlook (1-3 Weeks): The assessment remains consistent with the prior update. The recent sharp decline in GBP appears overextended. While further downside potential exists, it is unclear whether the 1.2580 support level will be tested. Conversely, a breach of the 1.2950 resistance level would negate the expectation of further declines.
