GBP/USD: Downward momentum loses impulse – UOB
|In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, prospects for extra downside in GBP/USD appears diminished for the time being.
Key Quotes
24-hour view: GBP closed slightly lower at 1.2721 yesterday (-0.22%). There is a slight increase in momentum, and GBP is likely to edge lower today. In view of the mild downward pressure, any decline is unlikely to break clearly below 1.2665. The major support at 1.2620 is unlikely to come under threat. On the upside, if GBP breaks above 1.2765 (minor resistance is at 1.2740), it would suggest that the current mild downward pressure has eased.
Next 1-3 weeks: We have held a negative GBP view for more than a week now. In our most recent update from two days ago (08 Aug, spot at 1.2780), we noted that “downward momentum has eased further.” We held the view that “the chance for GBP to drop to 1.2580 has diminished.” We continue to hold the same view for now. Overall, only a breach of 1.2805 (‘strong resistance’ level previously at 1.2830) would indicate that the GBP weakness has stabilised.
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.