GBP/USD: Expected to consolidate between 1.3540 and 1.3600 – UOB Group
|Pound Sterling (GBP) is expected to consolidate between 1.3540 and 1.3600. In the longer run, upward momentum remains strong; the next objective is 1.3635, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Upward momentum remains strong
24-HOUR VIEW: "GBP soared to 1.3550 last Friday. Yesterday, Monday, we indicated that 'while strong upward momentum indicates further GBP strength, overbought conditions suggest that any advance is unlikely to reach 1.3600.' We were not wrong, as GBP rose to 1.3593 before trading mostly sideways. The current price movements are likely part of a consolidation. Today, we expect GBP to trade between 1.3540 and 1.3600."
1-3 WEEKS VIEW: "Our update from yesterday (26 May, spot at 1.3530) remains valid. As highlighted, following last Friday’s price movements, 'upward momentum remains strong, and the next objective is 1.3635.' On the downside, a break of 1.3460 (‘strong support’ level previously at 1.3420) would indicate that the upward pressure that started in the middle of last week has faded."
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