Pound Sterling (GBP) is more likely to commerce in a variety of 1.3540/1.3640. Within the longer run, GBP should first shut above 1.3640 earlier than a transfer to 1.3700 will be anticipated, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Probability of closing above 1.3640 stays intact above 1.3515
24-HOUR VIEW: “On Wednesday, GBP dropped to 1.3466 earlier than rebounding strongly. Within the early Asian session yesterday, when GBP was at 1.3525, we indicated that ‘additional rebound will not be dominated out, however given the overbought circumstances, any advance is unlikely to achieve 1.3620.’ We identified that ‘assist ranges are at 1.3535 and 1.3515.’ Within the early London session, GBP plummeted to 1.3525 after which reversed sharply to achieve 1.3623 within the NY session earlier than closing at 1.3615 (+0.58%). Situations are deeply overbought, and GBP is unlikely to rise a lot additional. General, GBP is extra more likely to commerce in the next vary of 1.3540/1.3640.”
1-3 WEEKS VIEW: “We highlighted yesterday (12 Jun, spot at 1.3565) that GBP ‘seems to have moved right into a 1.3495/1.3620 vary buying and selling section.’ GBP subsequently rose to a excessive of 1.3623, closing at 1.3615 (+0.58%). Upward momentum is rising, however we favor to attend for a decisive shut above 1.3640 earlier than revising our GBP outlook to constructive. The probability of GBP closing above 1.3640 will stay intact so long as 1.3515 will not be breached. Wanting forward, ought to GBP shut above 1.3640, the main focus will shift to 1.3700.”
