GBP/USD: Focus now shifts to 1.2650/1.2600 – UOB
|FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang noted further downside in GBP/USD could target the 1.2650 level and probably 1.2600 in the short term.
Key Quotes
24-hour view: “While we expected GBP to ‘weaken further’ yesterday, we were of the view that ‘any further weakness could be limited to a test of 1.2770’. The subsequent weakness exceeded our expectations by a wide margin as GBP plunged to a low of 1.2697 before rebounding. Conditions remain deeply oversold and GBP is unlikely to weaken much further. For today, GBP is more likely to trade between 1.2690 and 1.2790.”
Next 1-3 weeks: “We turned negative in GBP yesterday (25 Apr, spot at 1.2830) and we were of the view that it ‘could weaken to 1.2770, as low as 1.2730’. We did not expect the ease by GBP cracked both 1.2770 and 1.2730 as it plunged to 1.2697. We continue to hold a negative view even though oversold shorter-term conditions could lead to 1 to 2 days of consolidation first. Looking ahead, the next levels to monitor are at 1.2650 and 1.2600. Overall, GBP is expected to stay under pressure as long as it does not move above 1.2900 (‘strong resistance’ level was at 1.2940 yesterday.”
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.