Present value motion is non-trending; Pound Sterling (GBP) is more likely to commerce in a variety between 1.3220 and 1.3320. Within the longer run, buildup in momentum has light; GBP is more likely to commerce in a 1.3140/1.3405 vary, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Buildup in momentum has light
24-HOUR VIEW: “Yesterday, we indicated that GBP ‘may proceed to rebound.’ Nevertheless, we identified, ‘as situations are approaching overbought, any additional advance is probably going restricted to a take a look at of 1.3340.’ We additionally identified that ‘The foremost resistance at 1.3405 will not be anticipated to come into sight.’ Whereas GBP rose greater than anticipated to 1.3361, it pulled again sharply to shut decrease by 0.33% at 1.3259. The contracting shifting common envelope signifies that the present value motion is non-trending. In different phrases, GBP is more likely to commerce in a variety at this time, anticipated to be between 1.3220 and 1.3320.”
1-3 WEEKS VIEW: “Our replace from yesterday (14 Might, spot at 1.3300) nonetheless stands. As highlighted, the current buildup in downward momentum has light. The present value actions are a part of a variety buying and selling section, and GBP is more likely to commerce in a 1.3140/1.3405 vary for now.”
