Pullback in Pound Sterling (GBP) may prolong however is unlikely to threaten 1.3450 (there’s one other assist stage at 1.3490). Within the longer run, upward momentum has largely pale; GBP is anticipated to commerce in a spread of 1.3450/1.3590, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
GBP is anticipated to commerce in a spread of 1.3450/1.3590
24-HOUR VIEW: “When GBP was at 1.3580 within the early Asian session yesterday, we highlighted the next: ‘GBP may check 1.3610 earlier than leveling off.’ Our view was incorrect, as GBP pulled again sharply from a excessive of 1.3588 and reached a low of 1.3504. The pullback may prolong however is unlikely to threaten the most important assist at 1.3450 (there’s one other assist stage at 1.3490). On the upside, resistance ranges are at 1.3535 and 1.3560.”
1-3 WEEKS VIEW: “Yesterday (24 Jul, spot at 1.3580), we highlighted that ‘though the outlook for GBP stays optimistic, short-term situations are deeply overbought, and the subsequent resistance at 1.3650 is unlikely to come into sight so quickly.’ We additionally indicated that ‘a breach of the 1.3490 (‘robust assist’ stage) would point out that the present upward strain has eased.’ We didn’t count on it to then pull again sharply to a low of 1.3504. Though 1.3490 has not been breached but, upward momentum has largely pale. To take a look at it one other method, the GBP power was shortlived. From right here, we count on GBP to commerce in a spread, almost certainly between 1.3450/1.3590.”
