GBP/USD: Climbs up towards 1.3215 – UOB Group
|The Pound Sterling (GBP) is expected to trade in a 1.3145/1.3215 range. In the longer run, rapid slowdown in momentum suggests the likelihood of GBP rising to 1.3320 has diminished, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann notes.
Rapid slowdown in momentum
24-HOUR VIEW: “While we noted an increase in downward momentum yesterday, we indicated that ‘it does not appear to be enough for GBP to break the strong support at 1.3145.’ However, GBP weakened more than expected, almost breaching 1.3145 as it reached a low of 1.3146. GBP closed at 1.3170 (-0.16%). Despite the decline, downward momentum has not increased much. Instead of continuing to weaken, GBP is expected to trade in a 1.3145/1.3215 range today.”
1-3 WEEKS VIEW: “Our update from yesterday (29 Aug, spot at 1.3195) is still valid. As highlighted, there has been a rapid slowdown in upward momentum. While our ‘strong support’ level at 1.3145 has not been breached yet, the slowdown in momentum suggests the likelihood of GBP rising to 1.3320 has diminished. GBP must break and remain above 1.3250 in the next 1 to 2 days, or a breach of the ‘strong support’ level would not be surprising.”
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.