GBP/USD: GBP to edge lower to 1.2590 – UOB Group
|Scope for the Pound Sterling (GBP) to edge lower to 1.2590; the major support at 1.2565 is likely out of reach. In the longer run, GBP is likely to continue to weaken to 1.2565, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
Below 1.2590 GBP to weaken towards 1.2565
24-HOUR VIEW: “Last Friday, we noted that ‘Downward momentum is showing tentative signs of slowing, but there is scope for GBP to retest the 1.2630 level.’ We added, ‘The major support at 1.2615 is unlikely to come under threat.’ The anticipated decline exceeded our expectations, as GBP fell to a low of 1.2598, closing at 1.2619 (-0.39%). Despite the relatively sharp decline, downward momentum has not increased much. That said, there is scope for GBP to edge lower to 1.2590. The major support at 1.2565 is likely out of reach. Resistance is at 1.2640, followed by 1.2670.”
1-3 WEEKS VIEW: “When GBP was at 1.2665 last Friday (15 Nov), we indicated that GBP “is expected to continue to weaken to 1.2615, possibly 1.2565.” We did not anticipate it to reach 1.2615 as quickly, as it dropped to a of low of 1.2598. While downward momentum has not increased much, GBP is likely to continue to weaken to 1.2565. On the upside, a breach of 1.2745 (‘strong resistance’ level was at 1.2770 last Friday) would indicate that the downward pressure that started early last week has faded.”
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.