GBP/USD: a move to 1.3070 looks out of reach so far – UOB

According to FX Strategists at UOB Group, Cable is expected to advance beyond 1.30 but a test of 1.3070 looks unlikely for the time being.

Key Quotes

24-hour view: “We detected the improved underlying tone yesterday and highlighted that GBP ‘could test the 1.2980 resistance’. We added, ‘the next resistance is at 1.3000 followed closely by last month’s top at 1.3012’. The subsequent GBP strength exceeded our expectation as it popped above last month’s peak and touched 1.3014 before easing off slightly. While the rapid rise appears to be running ahead of itself, it is too soon to expect a pullback. From here, the current advance in GBP could extend towards 1.3040 before a more sustained more sustained pull-back can be expected. On the downside, support is at 1.2975 followed by 1.2955.”

Next 1-3 weeks: “GBP edged a couple of pips above last month’s peak of 1.3012 as it touched 1.3014 during NY hours. Despite the relatively strong daily closing (1.2998, +0.44%), upward momentum has not improved by all that much. While GBP appears to ready to move out the recent sideway-trading phase, lackluster momentum suggests 1.3070 many not come into the picture so soon. On the downside, a breach of 1.2925 (‘strong support’ level) would indicate the current mild upward pressure has eased.”

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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD stays below 1.3350 on poor UK PMIs

GBP/USD hits fresh session lows of 1.3335 following an unexpected drop in the UK's Preliminary Manufacturing and Service PMI reports. However, the downside appears capped amid growing Brexit optimism. 


EUR/USD keeps range around 1.1130 on downbeat PMIs

EUR/USD trims gains to trade near 1.1130 region after the sentiment around the euro was dented by the disappointing German and Eurozone Preliminary Manufacturing PMIs. Trade concerns also keep the gains limited. 


UK Elections and US-China trade: Removing Risk Factors

Following the euphoria over the decisive UK election result and the US-China "Phase 1" trade deal markets look primed to end the year on a positive footing. Two of the major risk factors threatening to detail market sentiment into year end have at least been lifted.

Read more

Gold consolidates in a range, flat-lined around $1475 level

Gold extended its sideways consolidative price action through the early European session on Monday and remained confined in a narrow trading band near the $1475 region.

Gold News

USD/JPY clings to modest gains, just below mid-109.00s

The USD/JPY pair edged higher on the first day of a new trading week, albeit lacked any strong follow-through and remained well within the previous session's trading range.