In opinion of FX Strategists at UOB Group, Cable is likely to slip back to the 1.3260 region in the next weeks.

Key Quotes

24-hour view: “We highlighted last Friday that we ‘still see chance for GBP to dip below 1.3300 before a more sizeable rebound can be expected’. We added, ‘the next support at 1.3260 is unlikely to come into the picture’. Our view was not wrong as GBP briefly dipped to 1.3278 before rebounding. Downward pressure has eased and this coupled with oversold conditions suggest that the current movement is part of a consolidation phase. In other words, GBP is likely to trade sideways for today, expected to be within a range of 1.3300/1.3365.”

Next 1-3 weeks: “Our latest narrative was from last Thursday (25 Nov, spot at 1.3335) where we noted that downward momentum has improved and a break of 1.3300 would shift the focus to 1.3260. GBP cracked 1.3300 on Friday, dropped to 1.3278 before rebounding strongly. Oversold shorter-term conditions could lead to consolidation first. As long as 1.3390 (no change in ‘strong resistance’) is intact, there is room for GBP to drop to 1.3260. At this stage, a sustained decline below 1.3260 is unlikely.”

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD remains pressured towards 0.6900 on Australian jobs negative surprise

AUD/USD remains pressured towards 0.6900 on Australian jobs negative surprise

AUD/USD stays directed towards 0.6900 following a negative surprise in the Australian Employment Change data. Softer wage and jobs data will likely dissuade the RBA from aggressive tightening. Investors assess Fed minutes and US-Taiwan news. 

AUD/USD News

EUR/USD drops towards 1.0150 amid risk-aversion, ahead of US data

EUR/USD drops towards 1.0150 amid risk-aversion, ahead of US data

EUR/USD turns south after rejection at 1.0200 as risk-off flows dominate. US dollar finds demand, despite weaker yields and cautious Fed minutes. The euro looks vulnerable amid the deepening EU energy crisis and growth risks.

EUR/USD News

Gold keeps bearish potential intact towards $1,750

Gold keeps bearish potential intact towards $1,750

Gold price sees a dead cat bounce as the tide turns against bulls. Fed minutes, US-Taiwan geopolitical news and Chinese stimulus hopes lend support. XAU/USD bears need to crack the critical $1,755 level to extend the downside.

Gold News

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price is on the verge of triggering another run-up, but it needs to allow investors who partook in the previous rally to book profits. As a result, more market participants are likely to flock around the next support level, triggering another leg-up.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures