GBP/USD: Risk to fall towards 1.2550 – UOB Group
|The Pound Sterling (GBP) is expected to trade between 1.2620 and 1.2670. Downward momentum is picking up again. The next level to watch is 1.2550, UOB Group analysts note.
The next level to watch is 1.2550
24-HOUR VIEW: “We highlighted yesterday that GBP could break below 1.2600. We added, ‘oversold conditions suggest that the next major support at 1.2550 is unlikely to come into view.’ However, after dipping to a low of 1.2613, GBP rebounded strongly to 1.2670 before easing to close at 1.2639 (+0.14%). The price movements are likely part of a sideways trading phase. Today, we expect GBP to trade between 1.2620 and 1.2670.”
1-3 WEEKS VIEW: “We have held a negative view in GBP since early last week. After GBP fell sharply two days ago, we highlighted yesterday (27 Jun, spot at 1.2620) that ‘downward momentum is picking up again, and a break of 1.2600 would not be surprising.’ We also highlighted that ‘the next level to watch below 1.2600 is at 1.2550.’ We did not quite expect the strong rebound that came close to our ‘strong resistance’ level at 1.2680 (high has been 1.2670). While we continue to hold the same view, given the increased in volatility, we are raising the ‘strong resistance’ level to 1.2800.”
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