Pound Sterling (GBP) is predicted to commerce in a variety of 1.3530/1.3585 in opposition to US Greenback (USD). Within the longer run, there’s a likelihood for GBP to retest 1.3615 earlier than the chance of a extra sustained and sizeable pullback will increase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Likelihood of reaching 1.3615 remains to be on the playing cards
24-HOUR VIEW: “Final Friday, GBP dropped to 1.3508 earlier than rebounding. Yesterday, when GBP was at 1.3540, we indicated that “regardless of the decline, there was no clear enhance in downward momentum, and GBP is unlikely to weaken a lot additional.” We had been of the view that GBP “is extra more likely to commerce in a 1.3515/1.3575 vary.” Our view was not mistaken, as GBP rose barely above 1.3575 (excessive of 1.3582), pulled again to 1.3527, after which recovered to finish the day at 1.3550. The worth actions nonetheless seem like a part of a variety buying and selling section. As we speak, we count on GBP to commerce in a variety of 1.3530/1.3585.”
1-3 WEEKS VIEW: “Now we have maintained a constructive outlook on GBP since early final week (as annotated within the chart beneath). After GBP fell to a low of 1.3508 final Friday, we indicated yesterday (09 Jun, spot at 1.3540) that ‘the value motion has led to a slowdown in momentum, however so long as 1.3500 just isn’t breached, there’s a likelihood for GBP to retest 1.3615 earlier than the chance of a extra sustained and sizeable pullback will increase.’ We keep our view for now.”
