GBP/USD risks a probable break lower – UOB
|FX Strategists at UOB Group noted Cable could attempt some consolidation and even a move lower in the next weeks.
Key Quotes
24-hour view: “Expectation for GBP to ‘test last week’s low near 1.3055’ did not materialize as it traded between 1.3081 and 1.3169. The underlying tone still appears to be on the soft side and GBP could drift lower from here. That said, a clear break of 1.3055 appears unlikely. Resistance is at 1.3140 but only a move above 1.3160 would indicate the current mild downward pressure has eased.”
Next 1-3 weeks: “We highlighted yesterday (07 Jan, spot at 1.3170) that GBP ‘has to register a NY closing above 1.3190 or risk of further weakness remains intact’. GBP touched 1.3210 but retreated quickly and ended the day at 1.3120 (-0.34%). The price action suggests the bottom of the expected 1.3000/1.3300 remains vulnerable (expected range is narrowed from 1.3000/1.3400). All in, GBP is expected to stay under pressure and only a NY closing above 1.3190 would ‘neutralize’ the current downward pressure.”
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.