GBP/USD still expected to test 1.13170 – UOB
|Cable remains neutral although there is still scope for a test of 1.3170, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “GBP traded between 1.2980 and 1.3083 yesterday, higher than our expected 1.2960/1.3065 consolidation range. While upward momentum is not strong, there is room for GBP to edge above the overnight high of 1.3083 even though a break of the next resistance at 1.3105 would come as a surprise. Support is at 1.3020 but only a break of 1.2990 would indicate that a short-term top is in place”.
Next 1-3 weeks: “There is not much to add as GBP touched a ‘fresh’ high of 1.3087 before easing off. As highlighted yesterday (11 Sep, spot at 1.3025), while it is too soon to expect a shift to a bullish phase, the current GBP strength could extend higher and test the strong 1.3170 resistance. For now, we view any up-move as part of a corrective rebound and do not expect a sustained break above 1.3170. On the downside, only a break of 1.2900 would indicate that the prevalent upward pressure has eased”.
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.