Pound Sterling (GBP) is predicted to commerce in a variety between 1.3220 and 1.3320. Within the longer run, the probability of GBP breaking clearly under 1.3140 has diminished significantly, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Chance of GBP breaking clearly under 1.3140 has diminished
24-HOUR VIEW: “In NY commerce final Friday, GBP jumped to a excessive of 1.3309 earlier than settling at 1.3278, up by 0.56%. Regardless of the robust advance, upward momentum has not elevated considerably. At the moment, we anticipate GBP to commerce in a variety, most certainly between 1.3220 and 1.3320.”
1-3 WEEKS VIEW: “Our earlier replace was from final Thursday (31 Jul, spot at 1.3250), by which we said that ‘robust downward momentum continues to counsel GBP weak point, and the following stage to observe is Could’s low of 1.3140.’ On Friday, GBP dropped to inside a couple of pips of 1.3140 (low of 1.3143) earlier than rebounding strongly to a excessive of 1.3309. The worth motion has resulted in a pointy slowdown in downward momentum. The probability of GBP breaking clearly under 1.3140 has diminished significantly, however solely a breach of 1.3355 (no change in ‘robust resistance’ stage) would point out that the GBP weak point from early final week has stabilised.”
