GBP/USD: Potential interim low in place – UOB
|In opinion of FX Strategists at UOB Group, Cable could have charted and interim low and is now expected to move into a consolidation range.
Key Quotes
24-hour view: “Our view that GBP “’is still likely in a consolidation’ was wrong as it soared to an overnight high of 1.3008 before easing off. The rapid rise appears to be overdone and further sustained GBP strength appears unlikely. From here, GBP could drift downwards but any weakness is viewed as a lower trading range of 1.2890/1.3010 (a sustained decline below 1.2890 is not expected).”
Next 1-3 weeks: “Two days on 15 Sep (spot at 1.2845), we highlighted the waning downward momentum and held the view that GBP ‘has to close below 1.2795 within these few days or prospect for further weakness would diminish quickly’. GBP easily cracked our ‘strong resistance’ level of 1.2950 yesterday as it soared to a high of 1.3008. The price action suggests that the negative phase that started earlier last week has likely made an interim low at 1.2763. From here, GBP could consolidate between 1.2800 and 1.3100 for a period of time before attempting to move below 1.2763.”
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.