The Pound Sterling (GBP) is poised for a potential rebound, but any upward movement is unlikely to surpass 1.2980, according to UOB Group FX strategists Quek Ser Leang and Peter Chia. They suggest that GBP is more likely to consolidate between 1.2850 and 1.3020 in the near term.
Set to Consolidate Between 1.2850 and 1.3020
24-HOUR VIEW: “Last Thursday, GBP dropped sharply to a low of 1.2941. On Friday, when GBP was trading at 1.2950, we highlighted that ‘while the decline seems to be running ahead of itself, there is room for GBP to drop to 1.2915 before the risk of a rebound increases.’ We also noted that ‘the next support at 1.2850 is unlikely to come under threat.’ Although our view for GBP to decline was correct, it fell more than expected, reaching a low of 1.2901. GBP has since rebounded upon market opening today. There is scope for further rebound, but any advance is unlikely to reach 1.2980, with minor resistance at 1.2960. On the downside, support levels are at 1.2920 and 1.2905.”
1-3 WEEKS VIEW: “Our view remains consistent with last Friday (July 19, spot at 1.2950). As we highlighted, the recent upward trend in GBP has concluded. GBP appears to have entered a consolidation phase, and it is likely to trade between 1.2850 and 1.3020 for the time being.”
Related Topics:
