Firmer underlying tone suggests Pound Sterling (GBP) may retest the 1.3615 stage towards US Greenback (USD); the following resistance at 1.3655 is unlikely to return below risk. Within the longer run, GBP may edge larger; given the present momentum, any advance could not be capable of break clearly above 1.3655, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
GBP has an opportunity to edge larger
24-HOUR VIEW: “We said yesterday that ‘a slight enhance in momentum suggests an upside bias, however GBP is unlikely to interrupt clearly above 1.3600.’ Nonetheless, the worth actions didn’t fairly prove as we anticipated. GBP edged larger till the early NY session, when it popped above 1.3600, reaching 1.3616 earlier than retreating shortly and closed barely larger by 0.11% at 1.3571. The temporary rise above 1.3600 didn’t end in any enhance in upward momentum. Nonetheless, the firmer underlying tone suggests GBP may retest the 1.3615 stage earlier than a pullback is probably going. The subsequent resistance at 1.3655 is unlikely to return below risk. Assist is at 1.3555; a breach of 1.3530 would point out that GBP has entered a range-trading section.”
1-3 WEEKS VIEW: “We now have held the identical view since Tuesday (03 Jun, spot at 1.3555), whereby ‘there was a rise in short-term upward momentum, however for a sustained advance, GBP should first shut above 1.3600.’ Yesterday, GBP broke above 1.3600 after which pulled again to shut at 1.3571. Whereas the slight enhance in upward momentum will not be sufficient to point a sustained advance simply but, so long as the ‘robust help’ at 1.3500 (stage beforehand at 1.3470) will not be breached, GBP may edge larger. That stated, given the present momentum, any advance could not be capable of break clearly above 1.3655.”
