GBP/USD remains neutral, further consolidation likely – UOB
|In view of FX Strategists at UOB Group, Cable could extend the consolidative theme while within the current neutral outlook.
Key Quotes
“As highlighted yesterday (19 Feb), the rapid up-move in GBP last week appears to be running ahead of itself. However, a move above last Friday’s 1.4145 peak is not ruled out but a sustained move above 1.4200 is not expected for now”.
“In other words, the neutral phase that started 3 weeks ago is still intact and the price action since then is viewed as part of a rather broad consolidation phase that could last for a while more”.
“Looking further ahead, a clear break below the bottom of the currently expected 1.3920/1.4200 consolidation range would suggest a retest of the 1.3764 low seen earlier this month. The 1.3764 low sits near the rising trend-line support and a break of this rather strong level would indicate that GBP could head much lower in the subsequent weeks”.
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.