A slight improve in upward momentum suggests an upside bias, however Pound Sterling (GBP) is unlikely to interrupt clearly above 1.3600. Within the longer run, GBP should first shut above 1.3600 earlier than a sustained advance may be anticipated, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
A sustained advance may be anticipated above 1.3600
24-HOUR VIEW: “Within the early Asian session yesterday, when GBP was at 1.3530, we identified that ‘the present worth actions are doubtless a part of a 1.3490/1.3555 vary buying and selling section.’ GBP traded in a wider vary than anticipated, between 1.3501 and 1.3580, closing at 1.3556 (+0.27%). The slight improve in momentum suggests an upside bias right this moment, however at the moment, GBP doesn’t seem to have sufficient momentum to interrupt clearly above 1.3600 (there may be one other resistance at 1.3580). Help ranges are at 1.3530 and 1.3510.”
1-3 WEEKS VIEW: “Two days in the past (03 Jun, spot at 1.3555), we indicated that ‘there was a rise in short-term upward momentum, however for a sustained advance, GBP should first shut above 1.3600.’ GBP traded in a comparatively steady method over the previous couple of days, and we proceed to carry the identical view. General, solely a breach of 1.3470 (no change within the ‘sturdy help’ stage) would imply that the potential for GBP breaking clearly above 1.3600 has pale.”
