GBP/USD expected to be between 1.3300 and 1.3400 – UOB Group
Pound Sterling (GBP) is likely to trade in a range vs US Dollar (USD), expected to be between 1.3300 and 1.3400. In the longer run, the current price movements are part of a 1.3240/1.3450 range-trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Current price movements are part of a range-trading phase
24-HOUR VIEW: "Our view for GBP to trade with a downward bias yesterday was incorrect, as after dipping to a low of 1.3260, GBP soared, reaching a high of 1.3402. The subsequent pullback from the high amid overbought conditions suggests GBP is likely to trade in a range today, expected to be between 1.3300 and 1.3400."
1-3 WEEKS VIEW: "We highlighted yesterday (06 May, spot at 1.3280) that 'while the pullback from the late Apr high of 1.3445 has not gathered much momentum, there is room for GBP to continue to pull back.' We added, 'However, it remains to be seen if GBP can reach the major support at 1.3160.' We did not expect GBP to rebound to 1.3402, breaking above our ‘strong resistance’ at 1.3360. Downward momentum has faded with the rebound. We view the current price movements as part of a 1.3240/1.3450 range-trading phase."
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FXStreet Insights Team
FXStreet
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