GBP/USD: A move below 1.3760 loses traction – UOB
|In opinion of FX Strategists at UOB Group, the prospects for Cable breaking below 1.3760 appear diminished for the time being.
Key Quotes
24-hour view: “We highlighted yesterday that ‘the rebound appears to be running ahead of itself, further GBP strength appears unlikely’ and we expected GBP to ‘trade between 1.3700 and 1.3780’. Our view was not wrong even though GBP traded within a slightly narrower range than expected (1.3697/1.3770). The underlying tone has improved somewhat and this could lead to GBP edging upwards even though the major resistance at 1.3810 is unlikely to come under threat (there is another resistance at 1.3780). Support is at 1.3725 followed by 1.3695.”
Next 1-3 weeks: “Yesterday (12 Apr, spot at 1.3705), we noted that ‘downward momentum has not improved by much but a clear break of 1.3670 is not ruled out’. We added, ‘any further weakness is expected to struggle to move below the next support at 1.3640’. GBP subsequently dropped to 1.3670 before rebounding strongly to 1.3776. While our ‘strong resistance’ level at 1.3780 is still intact, downward momentum has waned and the prospect for a break of 1.3670 has diminished. For now, GBP is more likely to trade between 1.3670 and 1.3810.”
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.