Pound Sterling (GBP) is anticipated to commerce with a downward bias towards 1.3395 vs US Greenback (USD); a sustained break under this degree appears unlikely. Within the longer run, slight improve in downward momentum is prone to result in GBP buying and selling in a decrease vary of 1.3330/1.3530, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
GBP additionally might commerce in a decrease vary of 1.3330/1.3530
24-HOUR VIEW: “Following GBP’s value motion two days in the past, we famous yesterday that ‘the decline solely resulted in a slight improve in downward momentum.’ We additionally indicated that GBP ‘is prone to commerce in a decrease vary of 1.3480/1.3560.’ We didn’t count on GBP to drop and shut at 1.3458. GBP continues to say no as we speak. Downward momentum is growing, albeit not considerably. At this time, we count on GBP to commerce with a downward bias towards 1.3395. A sustained break under this degree appears unlikely. Resistance is at 1.3460, adopted by 1.3485.”
1-3 WEEKS VIEW: “Now we have held a constructive GBP view since late final week. Yesterday (28 Could, spot at 1.3515), we identified that ‘upward momentum is starting to wane.’ We said that ‘a break under 1.3460 (‘robust assist’ degree) would imply that 1.3635 is out of attain this time spherical.’ GBP then broke under 1.3460. Upward momentum has light. Downward momentum has elevated barely, however presently, that is prone to result in GBP buying and selling in a decrease vary of 1.3330/1.3530 relatively than of a sustained decline.”
