Momentum indicators are largely flat; Pound Sterling (GBP) may consolidate in a spread of 1.3420/1.3465. Within the longer run, fast enhance in momentum may result in GBP rising to 1.3515, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Fast enhance in momentum may result in GBP rising to 1.3515
24-HOUR VIEW: “Final Thursday, GBP soared to a excessive of 1.3448. On Friday, we indicated that ‘robust momentum suggests additional power.’ Nonetheless, we identified that ‘the most important resistance at 1.3515 is probably going out of attain for now.’ We added, ‘to take care of the robust momentum, GBP should maintain above 1.3395 (with minor assist at 1.3425).’ As an alternative of strengthening additional, GBP consolidated between 1.3418 and 1.3460, closing largely unchanged at 1.3455 (+0.07%). Momentum indicators are largely flat, and GBP may proceed to consolidate as we speak, probably in a spread of 1.3420/1.3465.”
1-3 WEEKS VIEW: “We revised our GBP view to constructive final Friday (08 Aug, spot at 1.3445), indicating that ‘the fast enhance in momentum may result in GBP rising to 1.3515.’ We are going to preserve our view so long as 1.3345 (no change in ‘robust assist’ degree) is just not breached.”
