GBP/USD: Weakness from the start of the month ends – UOB Group
|The Pound Sterling (GBP) is likely to trade sideways between 1.3010 and 1.3070. In the longer run, weakness from the start of the month has ended; GBP is likely to trade between 1.2980 and 1.3130 for the time being, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
GBP bulls can try to break above 1.3070
24-HOUR VIEW: “Last Friday, we expected GBP to trade in a 1.2985/1.3050 range. However, it rose to 1.3070, closing higher by 0.29% at 1.3048. Despite the advance, there is no significant increase in momentum. Instead of continuing to rise, GBP is more likely to trade sideways between 1.3010 and 1.3070.”
1-3 WEEKS VIEW: “In our most recent narrative from last Thursday (17 Oct, spot at 1.2990), we indicated that ‘the breach of the major support at 1.3000 sets the stage for further losses.’ We added, ‘Only a breach of 1.3080 (‘strong resistance’ level) would indicate that the weakness from early this month has ended.’ GBP rebounded strongly on Friday, reaching a high of 1.3070. Although our ‘strong resistance’ level has not been breached yet, downward momentum has largely faded. In other words, the weakness in GBP has ended, and for the time being, it is likely to trade in a range between 1.2980 and 1.3130.”
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.