Additional Pound Sterling (GBP) energy nonetheless appears seemingly vs US Greenback (USD); any advance is probably going half of a better vary of 1.3325/1.3410. Within the longer run, GBP may proceed to rise; based mostly on the present momentum, it would discover 1.3445 tough to interrupt, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
GBP can proceed to rise
24-HOUR VIEW: “After final Friday’s value actions, we indicated yesterday, Monday, that ‘the underlying tone nonetheless appears agency, and there’s a likelihood for GBP to check 1.3345.’ We added, ‘The foremost resistance at 1.3385 is unlikely to come into sight.’ Whereas our directional name was appropriate, GBP not solely examined 1.3345 but in addition breached 1.3385, reaching a excessive of 1.3403 earlier than pulling again. Upward momentum has slowed with the pullback, however additional GBP energy nonetheless appears seemingly. Nevertheless, any advance is probably going half of a better vary of 1.3325/1.3410. To place it one other method, GBP is unlikely to interrupt clearly above 1.3410 at the moment.”
1-3 WEEKS VIEW: “Final Wednesday (14 Might, spot at 1.3300), we highlighted that ‘the present value actions are a part of a spread buying and selling section, and GBP is more likely to commerce in a 1.3140/1.3405 vary for now.’ GBP subsequently traded nicely inside the vary. Yesterday (19 Might, spot at 1.3300), we indicated that ‘A 1.3200/1.3385 vary could also be sufficient to include value actions within the close to time period.’ We didn’t anticipate GBP to rise to 1.3403 earlier than pulling again to shut at 1.3363, up by 0.62%. The worth motion suggests GBP may proceed to rise, however based mostly on the present momentum, any advance would possibly discover the late April excessive of 1.3445 tough to interrupt. On the draw back, if GBP breaks under 1.3290 (‘sturdy help’ stage), it might imply that 1.3445 shouldn’t be coming into view.”
