According to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann, the British Pound Sterling (GBP) is projected to potentially decline to 1.2915 before the risk of a rebound increases. They note that the next significant support level at 1.2860 is unlikely to be tested in the near term.
Short-Term Outlook:
On Wednesday, GBP climbed to 1.3043 but subsequently retraced. The analysts had previously anticipated a range-bound movement between 1.2970 and 1.3045. Contrary to this expectation, GBP fell sharply to a low of 1.2941. Although the decline appears accelerated, further short-term drop to 1.2915 is possible before a rebound might occur. The analysts set resistance levels at 1.2975 and 1.2995.
1-3 Week Outlook:
The analysts have maintained a positive stance on GBP since July 4, when it was at 1.2745. As of July 18, with GBP at 1.3005, they noted that while the upward potential remains, the market is severely overbought, and a move to 1.3100 seems unlikely. They cautioned that a breach of 1.2940 could indicate a halt in GBP’s ascent. Indeed, GBP dropped to 1.2941 during New York trading. The advance in GBP appears to be ending, with the currency likely entering a consolidation phase. Analysts predict GBP will trade between 1.2850 and 1.3020 in the near future.
Related Topics:
