Sturdy momentum suggests additional Pound Sterling (GBP) power; the main resistance at 1.3515 is probably going out of attain for now. Within the longer run, fast enhance in momentum might result in GBP rising to 1.3515, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Sturdy momentum suggests additional GBP power
24-HOUR VIEW: “Following the sharp rise in GBP on Tuesday, we indicated yesterday, Wednesday, that ‘whereas overbought, the advance might lengthen to 1.3385.’ We added that GBP ‘is unlikely to interrupt clearly above this degree.’ We have been right on the primary depend, however incorrect on the second, as GBP soared to a excessive of 1.3450. Sturdy momentum suggests additional GBP power, though the main resistance at 1.3515 is probably going out of attain for now (there’s one other resistance degree at 1.3480). To keep up the robust momentum, GBP should maintain above 1.3395 (with minor help at 1.3425).”
1-3 WEEKS VIEW: “Yesterday (07 Aug, spot at 1.3345), we revised our view from unfavourable to impartial. We indicated that ‘the latest GBP weak spot had stabilised, and GBP has seemingly entered a 1.3285/1.3425 vary buying and selling part.’ The next sharp rise that reached a excessive of 1.3448 was shocking. The fast enhance in momentum may lead GBP to rising to 1.3515. We’ll view GBP in a optimistic method so long as it holds above 1.3345.”
