GBP/USD: Current price movements are likely part of a broad range – UOB Group
|Slight increase in downward momentum is likely to lead to Pound Sterling (GBP) trading in a lower range of 1.3485/1.3560. In the longer run, the current price movements are likely part of a broad range between 1.3430 and 1.3595, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
GBP is likely to trade in a lower range of 1.3485/1.3560
24-HOUR VIEW: "After GBP rose to a high of 1.3555 two days ago, we indicated yesterday that it 'could continue to rise, but the major resistance at 1.3595 is likely out of reach.' We were not wrong, as GBP rose to a high of 1.3591 before staging a sharp retreat that reached a low of 1.3518. There has been a slight increase in downward momentum, but this is likely to lead to a lower range of 1.3485/1.3560 rather than a sustained decline. In other words, GBP is unlikely to break clearly below 1.3485."
1-3 WEEKS VIEW: "We indicated two days ago (08 Sep, spot at 1.3480) that 'the current price movements are likely part of a broad range between 1.3430 and 1.3595.' Yesterday, GBP rose to a high of 1.3591, before pulling back. Given that there is no decisive break above 1.3595, we continue to expect GBP to trade in a range for now."
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