GBP/USD could test the bottom of the 1.3080/1.3170 range – UOB

In view of FX Strategists at UOB Group, Cable is seen declining and testing the lower bound of the 1.3080/1.3170 band in the next weeks.

Key Quotes

24-hour view: “The anticipated GBP strength exceeded our expectation as it moved above the strong resistance indicated at 1.3155 yesterday and touched a high of 1.3176. Despite the up-move, there is no significant improvement in upward momentum and we do not expect further GBP strength for today. GBP is more likely to trade sideways even though the immediate bias is for it to probe the bottom of the expected 1.3080/1.3170 consolidation range”.

Next 1-3 weeks: “There is not much to add to yesterday’s (07 Nov, spot at 1.3100) update. As highlighted, the recent rebound in GBP could extend further but at this stage, a break above the major 1.3190 resistance would come as a surprise. On the downside, only a move below the ‘key support’ at 1.3000 (level was at 1.2950 yesterday) would indicate that a short-term top is in place. Looking ahead, even there is a break above 1.3190; we see another strong resistance at 1.3220 ahead of the October’s peak of 1.3259”.

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 securities. 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 Forex 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.