GBP/USD: 1.3000 might not come into view so soon – UOB Group
|The Pound Sterling (GBP) could pullback, but any decline is unlikely to threaten the support at 1.2915. Risk remains on the upside; overbought conditions suggest 1.3000 might not come into view so soon, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.
All eyes on 1.3000
24-HOUR VIEW: “After GBP rose sharply last Thursday, we indicated on Friday that ‘the overbought advance could extend to 1.2970 before a pullback can be expected.’ We also indicated that ‘the next major resistance at 1.3000 is unlikely to come into view.’ GBP then advanced more than expected, reaching a high of 1.2991. GBP closed at 1.2990 but opened lower today. The advance remains overbought, and GBP is unlikely to rise further. Today, it could pullback, but any decline is unlikely to threaten the support at 1.2915 (minor support is at 1.2940). Resistance levels are at 1.2985 and 1.3000.”
1-3 WEEKS VIEW: “We have held a positive view in GBP since early this month. Last Friday (12 Jul, spot at 1.2925), we pointed out that ‘the risk remains on the upside, but overbought conditions suggest 1.3000 might not come into view so soon.’ GBP subsequently rose to 1.2991. While overbought short-term conditions could lead to a slight pullback within these 1 to 2 days, as long as 1.2870 (‘strong support’ level was at 1.2855 last Friday) is not breached, there is still a chance for GBP to rise to 1.3000.”
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.