Pound Sterling (GBP) is predicted to commerce in a sideways vary of 1.3540/1.3620. Within the longer run, GBP should first shut above 1.3640 earlier than a transfer to 1.3700 might be anticipated, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
A transfer to 1.3700 might be anticipated above 1.3640
24-HOUR VIEW: “We famous the next yesterday: ‘Momentum indicators are turning flat, and the present value actions are possible a part of a sideways buying and selling part, in all probability between 1.3515 and 1.3605.’ GBP then dipped to 1.3535, rose to 1.3636, earlier than retreating to shut largely unchanged (1.3576, +0.01%). The value actions nonetheless look like a part of a sideways buying and selling part. As we speak, we anticipate GBP to commerce in a spread of 1.3540/1.3620.”
1-3 WEEKS VIEW: “In our newest narrative from final Friday (13 Jun, spot at 1.3600), we highlighted that ‘upward momentum is growing, however we favor to attend for a decisive shut above 1.3640 earlier than revising our GBP outlook to optimistic.’ We added, ‘the probability of GBP closing above 1.3640 will stay intact so long as 1.3515 shouldn’t be breached.’ Yesterday (Monday), GBP rose to 1.3621 after which retreated to shut largely unchanged at 1.3576 (+0.01%). Whereas there was no additional improve in upward momentum, there’s nonetheless an opportunity for GBP to interrupt clearly above 1.3640 so long as 1.3515 shouldn’t be breached.”
