Offered Pound Sterling (GBP) stays under 1.3335 towards US Greenback (USD), it may edge decrease to 1.3265. Within the longer run, the present value actions are a part of a 1.3240/1.3450 range-trading section, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Worth actions are a part of a 1.3240/1.3450 range-trading section
24-HOUR VIEW: “Two days in the past, GBP soared to 1.3402 after which pulled again sharply. Yesterday, when GBP was at 1.3350, we indicated that ‘the pullback from the excessive amid overbought circumstances suggests GBP is more likely to commerce in a variety right this moment, anticipated to be between 1.3300 and 1.3400.’ As a substitute of buying and selling in a 1.3300/1.3400 vary, GBP dropped to a low of 1.3281, closing on a mushy word at 1.3290 (-0.60%). There was a slight enhance in downward momentum, however it’s not enough to recommend a sustained decline. Immediately, supplied that GBP stays under 1.3335 (minor resistance is at 1.3320), it may edge decrease to 1.3265. A dip under this stage shouldn’t be dominated out, however based mostly on the present momentum, any additional decline is unlikely to succeed in the key help at 1.3240.”
1-3 WEEKS VIEW: “We indicated yesterday (07 Might, spot at 1.3350) that ‘The present value actions as a part of a 1.3240/1.3450 range-trading section.’ There is no such thing as a change in our view. That mentioned, the slight enhance in short-term downward momentum signifies the growing danger of GBP breaking under 1.3240.”
