The Pound Sterling (GBP) could edge higher; there does seem to be enough momentum for it to reach 1.2900. While GBP could rebound, the likelihood of it reaching 1.2950 is not high, UOB Group Quek Ser Leang and Lee Sue Ann note.

To test the 1.2900 level near term

24-HOUR VIEW: “Yesterday, we expected GBP to trade in a sideways range between 1.2780 and 1.2855. However, it traded in a higher range of 1.2798/1.2871, closing modestly higher (1.2854, 0.21%). Upward momentum has increased, albeit just a tad. Today, GBP could edge higher, but there does seem to be enough momentum for GBP to reach 1.2900. Support levels are at 1.2840 and 1.2820.”