Additional consolidation appears probably; the firmer underlying tone suggests the next vary of 1.3390/1.3465. Within the longer run, Pound Sterling (GBP) view continues to be unfavorable in opposition to US Greenback (USD); the following technical goal at 1.3320 could not come into sight so quickly, because it might consolidate first, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Technical goal at 1.3320 could not come into sight
24-HOUR VIEW: “Following the uneven worth motion in GBP two days in the past, we indicated yesterday that ‘regardless of the sharp fluctuations, the present worth actions are probably a part of a 1.3360/1.3460 consolidation part.’ We didn’t anticipate the sharp lower in volatility, as GBP traded in a quiet method between 1.3375 and 1.3421, closing unchanged at 1.3418. Additional consolidation appears probably, although the firmer underlying tone suggests the next vary of 1.3390/1.3465.”
1-3 WEEKS VIEW: “We have now maintained a unfavorable GBP view since early this month. In our most up-to-date narrative from two days in the past (16 Jul, spot at 1.3395), we reiterated that ‘GBP view continues to be unfavorable.’ Nonetheless, we identified that ‘the following technical goal at 1.3320 could not come into sight so quickly, because it might consolidate first.’ Since then, downward momentum has slowed considerably, however we are going to keep our view so long as 1.3490 (‘sturdy resistance’ beforehand at 1.3500) shouldn’t be breached.”
