Currency analysts from UOB Group, Quek Ser Leang and Lee Sue Ann, forecast that the Pound Sterling (GBP) is likely to trade within a sideways range of 1.2780 to 1.2840. They emphasize that the risk for GBP remains skewed to the upside, with a critical level to watch at 1.2860.
24-Hour View:
After a sharp rise to 1.2817 last Friday, GBP continued its ascent, reaching a high of 1.2846 before retracing slightly to close around 1.2807 on Monday (-0.05%). Despite approaching overbought levels, further strength in GBP cannot be discounted. The significant resistance at 1.2860 is expected to hold, with additional resistance noted at 1.2840. Conditions suggest GBP is likely to consolidate today, trading within the range of 1.2780 to 1.2840.
1-3 Weeks View:
The analysts maintain their bullish outlook on GBP, highlighting the upside risk with the key level at 1.2860 still in focus. They caution that a break below 1.2750 would diminish the upward momentum observed since last Thursday. Previously identified strong support remains at 1.2840, indicating pivotal levels for future price action.
Overall, the GBP is anticipated to maintain a sideways trajectory in the near term, with potential for further gains contingent on breaking above resistance levels while watching key support levels for any downside risk.
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