GBP/USD: The pair may break above 1.2860 – UOB Group
|The Pound Sterling (GBP) is likely to trade in a sideways range of 1.2780/1.2840. Risk for GBP remains on the upside, the level to watch is 1.2860, UOB Group analysts Quek Ser Leang and Lee Sue Ann note.
The level to watch is 1.2860
24-HOUR VIEW: “Last Friday, GBP rose sharply to 1.2817. Yesterday (Monday), we indicated that ‘while the rapid rise is approaching overbought levels, further GBP strength is not ruled out.’ We also indicated that ‘the significant resistance at 1.2860 is highly unlikely to come under threat, and that there is another resistance level at 1.2840.’ GBP subsequently rose to a high of 1.2846 before pulling back to close largely unchanged (1.2807, -0.05%). Conditions remain overbought; this, combined with signs of slowing momentum suggests GBP is unlikely to strengthen further. Today, GBP is more likely to trade sideways, probably in a range of 1.2780/1.2840.”
1-3 WEEKS VIEW: “Our update from yesterday (08 Jul, spot at 1.2805) is still valid. As indicated, the risk for GBP remains on the upside, and the level to watch is 1.2860. On the downside if GBP breaks below 1.2750 (‘strong support’ level was at 1.2840 yesterday), it would mean that the upside risk from last Thursday 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.