The Pound Sterling (GBP) could test the 1.2725 level before a pullback is likely; the major resistance at 1.2750 is unlikely to come under threat. In the longer run, outlook for GBP has turned neutral; it is likely to trade between 1.2580 and 1.2750, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
GBP likely to trade between 1.2580 and 1.2750
24-HOUR VIEW: “After Tuesday’s price movements, we noted yesterday that ‘there has been no increase in either downward or upward momentum.’ We were of the view that EUR ‘is likely to trade in a 1.2630/1.2705 range.’ In London trade, GBP dropped briefly to 1.2630. GBP then rose to 1.2722 in NY trade, closing at 1.2702, higher by 0.23% for the day. Upward momentum has increased slightly. Today, GBP could test the 1.2725 level before a pullback is likely. The major resistance at 1.2750 is unlikely to come under threat. On the downside, support levels are at 1.2680 and 1.2660.”
1-3 WEEKS VIEW: “Two days ago (03 Dec), when GBP was at 1.2660, we revised our outlook from positive to neutral. We indicated that GBP ‘is likely to trade in a range, probably between 1.2580 and 1.2750.’ Our view remains unchanged.”
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