GBP/USD: To trade probably between 1.3020 and 1.3100 – UOB Group
|The Pound Sterling (GBP) is expected to trade in a range, probably between 1.3020 and 1.3100. In the longer run, there has been no further increase in momentum; a breach of 1.3125 would suggest that 1.3000 is out of reach, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
Breach of 1.3125 to suggest that 1.3000 is out of reach
24-HOUR VIEW: “Yesterday, when GBP was at 1.3070, we expected it to ‘drift lower, potentially breaking below 1.3050.’ We added, ‘due to the lackluster momentum, any decline is unlikely to reach 1.3000.’ GBP did not break below 1.3050 until NY trade, when it dropped to 1.3011 and then rebounded sharply. GBP closed slightly lower at 1.3061 (-0.11%). The price action did not result in any increase in downward momentum. Today, we expect GBP to trade in a range, probably between 1.3020 and 1.3100.”
1-3 WEEKS VIEW: “In our most recent narrative from last Monday (04 Oct, spot at 1.3130), we indicated that “although the recent price action suggests further GBP weakness, conditions are oversold, and the next major support at 1.3000 may not come into view so soon.” Yesterday, GBP dropped to a low of 1.3011. Despite the decline, there has been no further increase in downward momentum. However, only a breach of 1.3125 (‘strong resistance’ level was at 1.3150 yesterday) would suggest that 1.3000 is out of reach this time around.”
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.