Pullback in Pound Sterling (GBP) could extend but is unlikely to threaten 1.3450 (there is another support level at 1.3490). In the longer run, upward momentum has largely faded; GBP is expected to trade in a range of 1.3450/1.3590, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
GBP is expected to trade in a range of 1.3450/1.3590
24-HOUR VIEW: “When GBP was at 1.3580 in the early Asian session yesterday, we highlighted the following: ‘GBP could test 1.3610 before leveling off.’ Our view was incorrect, as GBP pulled back sharply from a high of 1.3588 and reached a low of 1.3504. The pullback could extend but is unlikely to threaten the major support at 1.3450 (there is another support level at 1.3490). On the upside, resistance levels are at 1.3535 and 1.3560.”
1-3 WEEKS VIEW: “Yesterday (24 Jul, spot at 1.3580), we highlighted that ‘although the outlook for GBP remains positive, short-term conditions are deeply overbought, and the next resistance at 1.3650 is unlikely to come into view so soon.’ We also indicated that ‘a breach of the 1.3490 (‘strong support’ level) would indicate that the current upward pressure has eased.’ We did not expect it to then pull back sharply to a low of 1.3504. Although 1.3490 has not been breached yet, upward momentum has largely faded. To look at it another way, the GBP strength was shortlived. From here, we expect GBP to trade in a range, most likely between 1.3450/1.3590.”
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.
