There may be scope for Pound Sterling (GBP) to proceed to rise to 1.3555. Above this stage, one can count on GBP/USD to rise in direction of the late July excessive, close to 1.3590, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
The ‘robust help’ stage is now at 1.3420 as an alternative of 1.3365
24-HOUR VIEW: “We anticipated GBP to ‘consolidate between 1.3395 and 1.3465’ yesterday. Nonetheless, as an alternative of consolidating, GBP rose to a excessive of 1.3523. There was a rise in momentum, albeit not considerably. Immediately, GBP might proceed to rise, however any advance is unlikely to achieve the key resistance at 1.3555. Be aware that there’s one other resistance stage at 1.3530. To maintain the momentum, GBP should not break under 1.3460, with minor help at 1.3480.”
1-3 WEEKS VIEW: “Final Friday (08 Aug, spot at 1.3445), we indicated that ‘the fast improve in momentum might result in GBP rising to 1.3515.’ After GBP struggled to increase its advance, we indicated the next yesterday (12 Aug, spot at 1.3435): ‘GBP has did not construct on its earlier momentum, because it consolidated over the previous couple of days. Nonetheless, so long as 1.3365 (‘robust help’ stage beforehand at 1.3345) is unbroken, there may be nonetheless an opportunity for GBP to rise to 1.3515.’ Within the NY session, GBP rose above 1.3515 because it reached a excessive of 1.3523. Regardless of the advance, there was no clear improve in upward momentum. That stated, there may be scope for GBP to proceed to rise to 1.3555. It’s too early to count on the late July excessive, close to 1.3590, to come into sight. On the draw back, the ‘robust help’ stage is now at 1.3420 as an alternative of 1.3365.”
