Additional Pound Sterling (GBP) weak point isn’t dominated out in opposition to US Greenback (USD); oversold circumstances counsel any decline could also be restricted to a retest of the 1.3460 degree. Within the longer run, tentative improve in downward momentum suggests GBP is more likely to commerce with a downward bias towards 1.3430, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
GBP is more likely to commerce with a downward bias towards 1.3430
24-HOUR VIEW: “Our view for GBP to commerce in a variety yesterday was incorrect, because it plunged to 1.3458, rebounding to shut at 1.3498, down by 0.38%. Whereas additional GBP weak point isn’t dominated out immediately, oversold circumstances counsel that any decline could also be restricted to a retest of the 1.3460 degree. The following help at 1.3420 is unlikely to come back beneath menace. Resistance ranges are at 1.3525 and 1.3555.”
1-3 WEEKS VIEW: “We turned constructive on GBP early final week. In our newest narrative from two days in the past (09 Jun, spot at 1.3540), we highlighted that ‘so long as 1.3500 isn’t breached, there’s a probability for GBP to retest 1.3615 earlier than the chance of a extra sustained and sizeable pullback will increase.’ Yesterday, GBP broke under 1.3500, reaching a low of 1.3458. Upward momentum has pale, and there was a tentative improve in downward momentum. From right here, GBP is more likely to commerce with a downward bias towards 1.3420. A transparent break of this degree may probably set off a deeper decline. The downward bias will stay intact so long as the ‘robust resistance’ degree at 1.3580 isn’t breached.”
