GBP/USD: Downward momentum is slowing – UOB Group
|The Pound Sterling (GBP) is expected to trade in a sideways range of 1.2940/1.2995. In the longer run, downward momentum is slowing; should GBP break above 1.3000, it would indicate that GBP is not declining further, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
GBP has a chance of breaking above 1.3000
24-HOUR VIEW: “We expected GBP to trade sideways between 1.2930 and 1.2990 yesterday. It subsequently traded in a higher range of 1.2942/1.3001, closing largely unchanged at 1.2972. The price action still appears to be part of a sideways trading phase. Today, we expect GBP to trade in a 1.2940/1.2995 range.”
1-3 WEEKS VIEW: “Yesterday (28 Oct, spot at 1.2960), we indicated that ‘downward momentum is slowing, and should GBP break above 1.3000 (‘strong resistance’ level), it would indicate that GBP is not declining further.’ In NY trading, GBP rose briefly to 1.3001, pulling back to close little changed at 1.2972 (+0.09%). As our ‘strong resistance’ has not been clearly breached, we will continue to hold the same view for now. That said, the likelihood for GBP to decline further is not high.”
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.