GBP/USD sticks to the range bound theme near term – UOB
|GBP/USD is now seen navigating within the 1.2040-1.2260 range in the short-term horizon, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: “While we expected GBP to strengthen yesterday, we were of the view that ‘a sustained rise above the major resistance at 1.2200 is unlikely’. In NY trade, GBP popped to a high of 1.2269, dropped quickly from the high and traded choppily before ending the day at 1.2176 (+0.29%). The price actions are likely part of a broad consolidation range and we expect GBP to trade between 1.2110 and 1.2220 today.”
Next 1-3 weeks: “Yesterday (14 Feb, spot at 1.2140), we highlighted that instead of heading lower, GBP is more likely to consolidate and trade between 1.2040 and 1.2260. GBP popped briefly to 1.2269 in NY trade before closing at 1.2176 (+0.29%). There is no change in our view and we continue to expect GBP to trade between 1.2040 and 1.2260.”
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.