There is a chance for Pound Sterling (GBP) to test 1.3545; the major resistance at 1.3575 is unlikely to come into view. In the longer run, GBP is likely to trade in a range between 1.3395 and 1.3575, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
GBP is likely to trade in a range between 1.3395 and 1.3575
24-HOUR VIEW: “The following are excerpts from our update yesterday: ‘We did not anticipate the spike in volatility, as GBP first fell sharply to 1.3417 before rebounding swiftly to a high of 1.3501. While there is room for GBP to rebound further, given that conditions are approaching overbought levels, any advance is likely to be limited to a test of 1.3545. The major resistance at 1.3575 is unlikely to come into view.’ The subsequent price movements did not turn out as anticipated, as GBP traded in a relatively narrow range of 1.3484/1.3530, closing largely unchanged at 1.3507 (+0.06%). The underlying tone still appears firm, and there is a chance for GBP to test 1.3545. However, 1.3575 is unlikely to come into view. On the downside, support levels are at 1.3485 and 1.3460.”
1-3 WEEKS VIEW: “We revised our view to neutral yesterday (28 Aug, spot at 1.3500), indicating that ‘upward momentum has faded’ and we expect GBP to ‘trade in a range between 1.3395 and 1.3575.’ There is no change in our view.”
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