GBP/USD: A test of 1.3050 remains in the pipeline – UOB
|FX Strategists at UOB Group do not rule out a drop to 1.3050 in cable in the next weeks.
Key Quotes
24-hour view: “Yesterday, we highlighted that GBP ‘could edge higher to 1.3205 before easing off’. GBP subsequently rose to 1.3195 before dropping sharply to 1.3081 during late NY session. Despite the decline, downward momentum has not improved by much. While there is room for GBP to weaken, a break of the major support at 1.3050 appears unlikely (next support is at 1.3000). Resistance is at 1.3135 followed by 1.3180.”
Next 1-3 weeks: “In our latest narrative from yesterday (10 Mar, spot at 1.3170), we highlighted that the downside risk in GBP is intact but the chance for GBP to decline has diminished. We did not expect the subsequent sharp drop to 1.3081. From here, GBP could dip below 1.3050 but barring a surge in downward momentum, the next support at 1.3000 could be out of reach. Overall, only a breach of 1.3220 (‘strong resistance’ level was at 1.3250 yesterday) would indicate that the weak phase that started 2 weeks ago has run its course.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.