GBP/USD: Trades towards 1.2850 – UOB Group
|There has been a slight increase in momentum; the Pound Sterling (GBP) is expected to drift lower, but any decline is unlikely to reach 1.2850, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
Unlikely to reach 1.2850
24-HOUR VIEW: “We noted yesterday that ‘the price action appears to be consolidative,’ and we expected GBP to trade in a range of 1.2905/1.2955. GBP then traded in a lower and wider range of 1.2889/1.2934, closing on a soft note at 1.2906 (-0.19%). There has been a slight increase in momentum. Today, we expect GBP to drift lower, but any decline is unlikely to reach 1.2850 (there is another support level at 1.2875). On the upside, if GBP breaches 1.2935 with minor resistance at 1.2920, would suggest that the current mild downward pressure has eased.”
1-3 WEEKS VIEW: “Last Friday (19 Jul, spot at 1.2950), we highlighted that ‘the recent advance in GBP has come to an end.’ We also highlighted that GBP ‘appears to have entered a consolidation phase, and it is likely to trade between 1.2850 and 1.3020 for the time being.’ GBP traded in a relatively quiet manner over the past few days, and there is no change in our view.”
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