GBP/USD consolidative near term – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group noted that Cable faces extra consolidation in the near term.

Key Quotes

24-hour view: “While GBP closed largely unchanged yesterday, the registered range of 1.3932/1.4025 was much lower than out expected 1.3960/1.4050 consolidation range. Indicators are mostly ‘neutral’ which suggests further range trading for now, likely within a 1.3940/1.4040”.

Next 1-3 weeks: “As highlighted yesterday (19 Feb), the rapid up-move in GBP last week appears to be running ahead of itself. However, a move above last Friday’s 1.4145 peak is not ruled out but a sustained move above 1.4200 is not expected for now. In other words, the neutral phase that started 3 weeks ago is still intact and the price action since then is viewed as part of a rather broad consolidation phase that could last for a while more. Looking further ahead, a clear break below the bottom of the currently expected 1.3920/1.4200 consolidation range would suggest a retest of the 1.3764 low seen earlier this month. The 1.3764 low sits near the rising trend-line support and a break of this rather strong level would indicate that GBP could head much lower in the subsequent weeks”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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