Overbought advance in Pound Sterling (GBP) might prolong in opposition to US Greenback (USD), however a transparent break above 1.3385 is unlikely. Within the longer run, GBP has doubtless entered a 1.3285/1.3425 vary buying and selling section, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Overbought advance in GBP may prolong
24-HOUR VIEW: “Whereas we continued to count on GBP to commerce in a spread yesterday, we indicated that ‘the firmer underlying tone suggests the next vary of 1.3270/1.3320.’ We didn’t anticipate GBP to rise sharply to a excessive of 1.3369. Whereas overbought, the advance might prolong to 1.3385. GBP is unlikely to interrupt clearly above this degree. On the draw back, help ranges are at 1.3325 and 1.3310.”
1-3 WEEKS VIEW: “We have now held a detrimental GBP view since early final week. Final Friday, GBP dropped and nearly reached our technical goal at 1.3140 (low has been 1.3143) earlier than rebounding. In our newest narrative from Monday (04 Aug, spot at 1.3275), we highlighted that ‘the chance of GBP breaking clearly under 1.3140 has diminished significantly, however solely a breach of 1.3355 (‘sturdy resistance’ degree) would point out that the GBP weak spot has stabilised.’ Yesterday, GBP breached 1.3355. GBP has doubtless entered a spread buying and selling section. From right here, we count on GBP to commerce between 1.3285 and 1.3425.”
