Pound Sterling (GBP) is more likely to commerce in a 1.3515/1.3575 vary. Within the longer run, there’s a probability for GBP to retest 1.3615 earlier than the danger of a extra sustained and sizeable pullback will increase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
GBP to retest 1.3615 earlier than a sustained and sizeable pullback
24-HOUR VIEW: “Following the transient rise in GBP to 1.3616 final Thursday, we famous that ‘the transient rise above 1.3600 didn’t lead to any improve in upward momentum.’ Nonetheless, we identified that ‘the firmer underlying tone suggests GBP might retest the 1.3615 stage earlier than a pullback is probably going’. GBP didn’t retest 1.3615 however dropped to 1.3508 earlier than rebounding. Regardless of the decline, there was no clear improve in downward momentum, and GBP is unlikely to weaken a lot additional. In the present day, GBP is extra more likely to commerce in a 1.3515/1.3575 vary.”
1-3 WEEKS VIEW: “The next are excerpts from our replace final Friday (06 Jun, spot at 1.3575): ‘Whereas the slight improve in upward momentum isn’t sufficient to point a sustained advance simply but, so long as the ‘robust help’ at 1.3500 isn’t breached, GBP might edge larger. That mentioned, given the present momentum, any advance could not be capable of break clearly above 1.3655.’ Throughout the NY session, GBP dropped to a low of 1.3508. The worth motion has led to a slowdown in momentum, however so long as 1.3500 isn’t breached, there’s a probability for GBP to retest 1.3615 earlier than the danger of a extra sustained and sizeable pullback will increase. The 1.3655 stage is unlikely to become visible.”
