The current price action still appears to be part of a consolidation phase; Pound Sterling (GBP) is likely to trade between 1.3395 and 1.3465. In the longer run, GBP has failed to build on its earlier momentum, but there is still a chance for GBP to rise to 1.3515, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
GBP has failed to build on its earlier momentum
24-HOUR VIEW: “Following last Friday’s quiet price action, we indicated yesterday that ‘momentum indicators are mostly flat, and GBP could continue to consolidate today, most likely in a range of 1.3420/1.3465.’ GBP then traded between 1.3399 and 1.3476, a wider range than expected. The current price action still appears to be part of a consolidation phase. Today, we expect GBP to trade between 1.3395 and 1.3465.”
1-3 WEEKS VIEW: “After GBP rose sharply in the middle of last week, we indicated last Friday (08 Aug, spot at 1.3445) that ‘the rapid increase in momentum could lead to GBP rising to 1.3515.’ However, GBP has failed to build on its earlier momentum, as it consolidated over the past couple of days. Nonetheless, as long as 1.3365 (‘strong support’ level previously at 1.3345) is intact, there is still a chance for GBP to rise to 1.3515.”
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