The slight enhance in downward momentum suggests GBP is prone to commerce in a decrease vary of 1.3480/1.3560. Within the longer run, upward momentum is starting to wane, however solely a breach of 1.3460 would imply that 1.3635 is out of attain this time spherical, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Upward momentum is starting to wane
24-HOUR VIEW: “Our view for GBP to ‘consolidate 1.3540 and 1.3600” yesterday was incorrect, because it fell to 1.3501 earlier than closing at 1.3507, down 0.42%. The decline solely resulted in a slight enhance in downward momentum, and somewhat than a sustained drop, GBP is extra prone to commerce in a decrease vary of 1.3480/1.3560 right now.”
1-3 WEEKS VIEW: “We have now held a constructive GBP view because the center of final week. In our most up-to-date narrative from two days in the past (26 Might, spot at 1.3530), we identified that ‘upward momentum stays robust.’ We added, The subsequent goal is 1.3635.’ Yesterday, GBP noticed a surprisingly sharp pullback, dropping to a low of 1.3501. Whereas upward momentum is starting to wane, solely a break under 1.3460 (no change in ‘robust assist’ stage from yesterday) would imply that 1.3635 is out of attain this time spherical.”
