Further side-lined trading remains on the table for GBP/USD in the next few weeks, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: On Tuesday, GBP rose to a high of 1.2558. Yesterday (Wednesday), we indicated that “despite the advance, upward momentum still has not shown much improvement.” We held the view that “there is scope for GBP to continue to edge higher, even though 1.2580 is still likely out of reach for now.” However, GBP did not edge higher, but fell to 1.2450. Upward pressure has faded, and today, GBP is likely to trade sideways, probably in a range of 1.2440/1.2530.
Next 1-3 weeks: Our latest narrative was from two days ago (21 Nov, spot at 1.2505), wherein we indicated that “despite the mild increase in momentum, there is still a chance for GBP to rise to 1.2580. Yesterday, GBP fell and broke below our ‘strong support’ level of 1.2460 (low has been 1.2450). The breach of the ‘strong support’ indicates that the GBP strength that started in the middle of last week has ended. GBP appears to have moved into a range-trading phase and is likely to trade between 1.2360 and 1.2560 for the time being.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD stays firm above 1.2750 after a landslide Labour victory
GBP/USD keeps its range above 1.2750 in early European session on Friday. The Pound Sterling stays unperturbed by the landslide Labour Party victory in the UK general election while the US Dollar awaits the Nonfarm Payrolls data for fresh directives.
EUR/USD holds gains above 1.0800 ahead of US payrolls
EUR/USD is consolidating gains above 1.0800 in the European session on Friday. The pair holds its week-long winning streak amid a broad US Dollar weakness and an upbeat market mood. The further upside hinges on the US Nonfarm Payrolls data release.
Gold could retest June highs at $2,390 on US NFP disappointment
Gold price is consolidating near two-week highs of $2,365 reached on Wednesday, as the US Dollar continues to lick its wounds, shrugging off a minor bounce in the US Treasury bond yields. Gold price braces for the return of US traders from the July 4 holiday and the all-important Nonfarm Payrolls data for fresh impulse.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin falls below $56,000 level
BTC breached the weekly support level of $58,375 on Thursday; as of Friday, it is trading 2.8% lower at $55,314. ETH and XRP have dropped below crucial support thresholds.
Nonfarm Payrolls forecast to grow by 190K in June as Fed ponders rate-cut timing
With US Federal Reserve Chairman Jerome Powell’s Sintra appearance out of the way, all eyes now remain on top-tier Nonfarm Payrolls data for June, due on Friday at 12:30 GMT.