Robust momentum suggests additional Pound Sterling (GBP) power in opposition to US Greenback (USD), despite the fact that it’s unclear if this will likely be adequate for a break above 1.3600. Within the longer run, GBP should first shut above 1.3600 earlier than a sustained advance could be anticipated, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Robust momentum suggests additional GBP power
24-HOUR VIEW: “Yesterday, we anticipated GBP to ‘commerce in a spread between 1.3435 and 1.3505.’ Nevertheless, GBP broke above 1.3505 and soared to 1.3559 earlier than closing at 1.3544, up by 0.68%. Robust momentum suggests additional GBP power, despite the fact that it’s unclear this will likely be adequate for a break of the 1.3600 resistance. To take care of the momentum, GBP should not break under 1.3500 (minor assist is at 1.3520).”
1-3 WEEKS VIEW: “Our newest narrative was from final Friday (30 Might, spot at 1.3500), whereby ‘the present worth actions nonetheless seem like a part of a spread buying and selling part, probably between 1.3400 and 1.3600.’ Yesterday, GBP rose to 1.3559. There was a rise in short-term upward momentum, however for a sustained advance, GBP should first shut above 1.3600. The probability of GBP closing above 1.3600 will develop within the subsequent few days so long as the ‘robust assist’ stage at 1.3470 is undamaged.”
