GBP/USD may not have enough steam to break above 1.3570 – UOB Group
|The risk for Pound Sterling (GBP) remains on the upside; it is unclear whether momentum is strong enough to break above 1.3570, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Risk for GBP remains on the upside
24-HOUR VIEW: "Following GBP’s price action two days ago, we highlighted the following yesterday: 'There has been no shift in either downward or upward momentum, and we continue to expect range-trading today, most likely between 1.3400 and 1.3460'. GBP subsequently dipped to a low of 1.3402 before staging a surprisingly sharp rally that broke slightly above the major resistance at 1.3505 (high of 1.3507). While further GBP strength is not ruled out, deeply overbought conditions suggest a sustained break above 1.3525 is unlikely. The high seen earlier this month, near 1.3570, is not expected to come into view. On the downside, firm support is located at 1.3460, with minor support at 1.3480."
1-3 WEEKS VIEW: "We highlighted two days ago (21 Jan, spot at 1.3440) that 'the near-term bias is tilted to the upside toward 1.3505, but based on the current momentum, GBP may not break clearly above this level'. In a sudden move yesterday, GBP rallied to a high of 1.3507. While the price action suggests the risk for GBP remains on the upside, it is unclear for now whether upward momentum is strong enough to break above the significant resistance at 1.3570. The upside bias will remain intact as long as GBP holds above 1.3430 (‘strong support’ level previously at 1.3380)."
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.