GBP/USD risks a deeper pullback – UOB
|According to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, GBP/USD should meet a tough support around 1.2120 in the next few weeks.
Key Quotes
24-hour view: “Our view for the ‘advance in GBP to extend’ was incorrect as it plummeted to 1.2222 before closing on a weak note at 1.2225 (-1.22%). Strong downward momentum suggests further GBP weakness even though the major support at 1.2120 is unlikely to come under threat today (minor support is at 1.2160). On the upside, a breach of 1.2290 (minor resistance is at 1.2260) would indicate the weakness in GBP has stabilized.”
Next 1-3 weeks: “Yesterday (02 Feb, spot at 1.2385), we highlighted that while upward momentum is beginning to build, GBP must break and stay above 1.2450 before a sustained advance is likely. However, GBP plummeted and quickly took out our ‘strong support’ level at 1.2300. The rapid increase in momentum has shifted the risk to the downside but any decline is expected to face solid support at 1.2130. Overall, only a breach of 1.2320 would indicate that the rapid increase in downward momentum has faded.”
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.