GBP/USD: Outlook for GBP turns neutral – UOB Group
|The Pound Sterling (GBP) could test the 1.2725 level before a pullback is likely; the major resistance at 1.2750 is unlikely to come under threat. In the longer run, outlook for GBP has turned neutral; it is likely to trade between 1.2580 and 1.2750, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
GBP likely to trade between 1.2580 and 1.2750
24-HOUR VIEW: “After Tuesday’s price movements, we noted yesterday that ‘there has been no increase in either downward or upward momentum.’ We were of the view that EUR ‘is likely to trade in a 1.2630/1.2705 range.’ In London trade, GBP dropped briefly to 1.2630. GBP then rose to 1.2722 in NY trade, closing at 1.2702, higher by 0.23% for the day. Upward momentum has increased slightly. Today, GBP could test the 1.2725 level before a pullback is likely. The major resistance at 1.2750 is unlikely to come under threat. On the downside, support levels are at 1.2680 and 1.2660.”
1-3 WEEKS VIEW: “Two days ago (03 Dec), when GBP was at 1.2660, we revised our outlook from positive to neutral. We indicated that GBP ‘is likely to trade in a range, probably between 1.2580 and 1.2750.’ Our view remains unchanged.”
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.