The momentum driving the Pound Sterling (GBP) appears to be waning. Analysts at UOB Group highlight that a break above the 1.2700 level would indicate that GBP is not weakening further.
GBP Break Above 1.2700 Could Signal Strength
24-Hour View: “Last Friday, we anticipated a sideways trading phase for GBP, expecting it to trade between 1.2620 and 1.2670. This prediction was accurate, as GBP remained within this range, closing relatively unchanged at 1.2646 (+0.05%). With no significant increase in momentum, both upward and downward, further sideways trading is expected today. The anticipated range for GBP is 1.2625/1.2675.”
1-3 Weeks View: “We have maintained a negative outlook for GBP over the past two weeks. In our latest commentary on June 27 (spot at 1.2620), we observed that ‘downward momentum is picking up, and a break of 1.2600 would not be surprising.’ However, GBP has not made further downward progress since then. The fading momentum suggests that if GBP breaks above 1.2700, it would signal that the currency is not weakening further.”
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