Additional rebound just isn’t dominated out, however Pound Sterling (GBP) is unlikely to achieve 1.3620 towards US Greenback (USD). Within the longer run, GBP seems to have moved right into a 1.3495/1.3620 vary buying and selling part, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
GBP seems to have moved right into a 1.3495/1.3620 vary
24-HOUR VIEW: “GBP plummeted to a low of 1.3458 two days in the past after which rebounded. Yesterday, when GBP was at 1.3500, we highlighted that ‘whereas additional GBP weak point just isn’t dominated out at this time, oversold circumstances counsel that any decline could also be restricted to a retest of the 1.3460 stage.’ Whereas GBP subsequently dropped to 1.3466, it rebounded strongly, reaching a excessive of 1.3568 within the late NY session. Additional rebound just isn’t dominated out, however given the overbought circumstances, any advance is unlikely to achieve 1.3620 (there may be one other resistance at 1.3600). Help ranges are at 1.3535 and 1.3515.”
1-3 WEEKS VIEW: “Yesterday (11 Jun, spot at 1.3500), we famous ‘a tentative enhance in downward momentum.’ We indicated that GBP ‘is prone to commerce with a downward bias towards 1.3430.’ We identified that ‘the downward bias will stay intact so long as the ‘robust resistance’ stage at 1.3580 just isn’t breached.’ GBP subsequently dropped to 1.3466 after which rebounded strongly to shut 0.29% larger at 1.3566. Whereas our ‘robust resistance’ stage has not been breached but, downward momentum has largely light. GBP seems to have moved right into a rangetrading part, and is prone to commerce between 1.3495 and 1.3620 for now.”
