GBP/USD: Expected to trade in a sideways range of 1.3540/1.3620 – UOB Group
|Pound Sterling (GBP) is expected to trade in a sideways range of 1.3540/1.3620. In the longer run, GBP must first close above 1.3640 before a move to 1.3700 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
A move to 1.3700 can be expected above 1.3640
24-HOUR VIEW: "We noted the following yesterday: 'Momentum indicators are turning flat, and the current price movements are likely part of a sideways trading phase, probably between 1.3515 and 1.3605.' GBP then dipped to 1.3535, rose to 1.3636, before retreating to close largely unchanged (1.3576, +0.01%). The price movements still appear to be part of a sideways trading phase. Today, we expect GBP to trade in a range of 1.3540/1.3620."
1-3 WEEKS VIEW: "In our latest narrative from last Friday (13 Jun, spot at 1.3600), we highlighted that 'upward momentum is increasing, but we prefer to wait for a decisive close above 1.3640 before revising our GBP outlook to positive.' We added, 'the likelihood of GBP closing above 1.3640 will remain intact as long as 1.3515 is not breached.' Yesterday (Monday), GBP rose to 1.3621 and then retreated to close largely unchanged at 1.3576 (+0.01%). While there has been no further increase in upward momentum, there is still a chance for GBP to break clearly above 1.3640 as long as 1.3515 is not breached."
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