Outlook in GBP/USD remains mixed – UOB
|Cable is now forecasted to trade between 1.30 and 1.33 amidst the current mixed outlook, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected GBP to strengthen yesterday but were of the view that ‘the odds for a sustained rise above last week’s top near 1.3265 are not high’. We highlighted that ‘there is another strong resistance at 1.3300’. During NY session, GBP surged briefly to a high of 1.3285 before dropping back down to end the day at 1.3195 (-0.09%). Despite the largely unchanged daily closing, the underlying tone appears to have weakened somewhat. From here, GBP could drift lower but any weakness is viewed as a lower trading range of 1.3155/1.3255.”
Next 1-3 weeks: “Yesterday (26 Aug, spot at 1.3145), we indicated that the ‘odds for GBP to move to 1.2980 have diminished: GBP subsequently cracked the 1.3200 ‘strong resistance’ level and the recent build-up in downward momentum has dissipated. From here, the outlook for GBP is mixed. Looking back, the movement in GBP for most of this month has been erratic especially over the past several days where there were several relatively large (and rapid) but short-lived swings. For now, GBP could continue to trade in a choppy manner between the two major levels of 1.3000 and 1.3300. Only a clear break of either one of the two levels would indicate the start of a more sustained directional move.”
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