GBP/USD is expected to trade within 1.2015-1.2260 – UOB
|GBP/USD seems to have now moved into a consolidative phase, likely between 1.2015 and 1.2260, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: “We did not anticipate the sharp rise in GBP to 1.2193 and the subsequent sharp pullback from the high (we were expecting GBP to trade in a range). Despite the advance, there is no significant improvement in upward momentum and GBP is unlikely to rise further. Today, GBP is more likely to trade sideways, expected to be between 1.2060 and 1.2175.”
Next 1-3 weeks: “Yesterday (09 Feb 2023, spot at 1.2070), we highlighted that there is still a slim chance for GBP to drop to 1.1845. GBP subsequently rose above our ‘strong resistance’ level of 1.2150 (high has been 1.2193). The breach of the ‘strong resistance’ indicates that the GBP weakness that started early this month (see annotations in the chart below) has ended. GBP appears to have entered a consolidation phase and it is likely to trade between 1.2015 and 1.2260 for now.”
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.