GBP/USD: A break above 1.2700 to turn the momentum to the upside – UOB Group
|Increase in momentum is beginning to fade. If the Pound Sterling (GBP) breaks above 1.2700, it would mean that it is not weakening further, analysts at UOB Group note.
A break above 1.2700 to turn GBP higher
24-HOUR VIEW: “We noted last Friday that 'the price movements are likely part of a sideways trading phase,' and we expected GBP to trade between 1.2620 and 1.2670. Our expectations turned out to be correct, as GBP traded in a range of 1.2620/1.2670, closing largely unchanged (1.2646, +0.05%). There has been no increase in downward or upward momentum, and further sideways trading seems likely. Expected range for today: 1.2625/1.2675.”
1-3 WEEKS VIEW: “We have held a negative view in GBP for about 2 weeks now. In our latest narrative from last Thursday (27 Jun, spot at 1.2620), we noted that 'downward momentum is picking up again, and a break of 1.2600 would not be surprising.' Since then, GBP has not been able to make any further headway on the downside. The increase in momentum is beginning to fade, and if GBP breaks above 1.2700, it would mean that GBP is not weakening further.”
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