GBP/USD remains within a consolidative mode – UOB
|In opinion of FX Strategists at UOB Group, Cable now faces further consolidation within the 1.3730-1.3885 range in the next weeks.
Key Quotes
24-hour view: “Our view for GBP to ‘trade sideways within a 1.3800/1.3860 range’ was incorrect. GBP surged to a high of 1.3913 during NY session but the advance was short-lived as it plummeted back down to 1.3804. The sharp and rapid decline from the overnight high has room to extend lower but a clear break of the support at 1.3760 is unlikely (minor support is at 1.3780). Resistance is at 1.3830 followed by 1.3860. The 1.3913 high is not expected to come into the picture.”
Next 1-3 weeks: “We highlighted yesterday (14 Sep, spot at 1.3835) that ‘as long as 1.3760 is not breached, GBP could stage another attempt to move to 1.3890’. We added, ‘GBP has to close above 1.3910 before a sustained advance can be expected’ and that ‘the prospect for GBP to close above 1.3910 is not high’. While our over view for GBP to test 1.3890 was not wrong, we did not anticipate the rapid manner by which GBP surged to 1.3913 during NY session and the subsequent sharp sell-off (GBP closed lower by -0.23% at 1.3808). Upward pressure has dissipated and the current movement is viewed as part of a consolidation phase. From here, GBP could trade between 1.3730 and 1.3885 for a period of time.”
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.