GBP/USD: Likely to consolidate between 1.3315 and 1.3385 – UOB Group
|Pound Sterling (GBP) is likely to consolidate between 1.3315 and 1.3385. In the longer run, price action continues to suggest GBP weakness; the next technical target is 1.3300, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Price action continues to suggest GBP weakness
24-HOUR VIEW: "GBP dropped sharply two days ago. Yesterday, when it was at 1.3360 in the early Asian session, we noted that 'although conditions are deeply oversold, there is still no clear sign that the decline has stabilized.' However, we highlighted that 'any further decline is unlikely to reach 1.3300.' Our assessments were not wrong, as GBP dropped to a low of 1.3308, rebounding to close marginally higher at 1.3356 (+0.01%). The current price movements appear to be part of a consolidation phase. Today, we expect GBP to trade between 1.3315 and 1.3385."
1-3 WEEKS VIEW: "In our update yesterday (29 Jul, spot at 1.3360), we highlighted that the price action from earlier this week 'continues to suggest GBP weakness, and the next technical target is 1.3300.' GBP subsequently fell to a low of 1.3308 before rebounding. While downward momentum has slowed somewhat, there is still a chance for GBP to reach 1.3300. However, if GBP breaks above 1.3445 (‘strong resistance’ level was at 1.3465 yesterday) it would mean that the weakness is stabilizing."
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