GBP/USD now faces some near-term consolidation within 1.1850-1.2080, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that the ‘oversold weakness in GBP could extend to 1.1915 before stabilization is likely’. Our expectation did not materialize as GBP rose to 1.2062 before dropping back down to end the day little changed at 1.1953 (-0.04%). Downward momentum appears to be building, albeit tentatively. As long as GBP does not move above 1.2020 (minor resistance is at 1.1990), GBP is likely to trade with a downward bias today. However, any weakness is unlikely to challenge the major support at 1.1850 (there is another support at 1.1915).”

Next 1-3 weeks: “Our update from yesterday (29 Nov, spot at 1.1965) is still valid. As highlighted, the recent buildup in upward momentum has faded. GBP appears to have moved into a consolidation phase and is likely to trade within a range of 1.1850/1.2080. Looking ahead, a clear break of 1.1850 could signal a deeper drop in GBP.”

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: Inside day Friday opens risk of a lower close on Monday, 0.7050 eyed

AUD/USD: Inside day Friday opens risk of a lower close on Monday, 0.7050 eyed

AUD/USD was the best performer for the G7 last week and Aussie bulls could be trapped up high for the week ahead which holds a number of key data events. The following illustrates a bearish bias for the initial balance of the week, Monday with 0.7050 eyed.

AUD/USD News

EUR/USD faces fragile barricades below 1.0900 ahead of German GDP data

EUR/USD faces fragile barricades below 1.0900 ahead of German GDP data

The EUR/USD pair is struggling to extend its recovery move above the immediate resistance of 1.0870 in the early Tokyo session. The major currency pair delivered a rebound move from the previous week’s low around 1.0840 amid a restricted upside in the US Dollar index (DXY).

EUR/USD News

Gold bears await Federal Reserve decision, United States Non-farm Payrolls

Gold bears await Federal Reserve decision, United States Non-farm Payrolls

Gold price holds lower ground near $1,925 after posting an indecisive weekly closing as the metal traders await the key United States data and the Federal Reserve’s (Fed) monetary policy decision. Also important will be central bank meetings of the European Central Bank (ECB), Purchasing Managers’ Indexes data and the US employment numbers for January.

Gold News

Hedera missed the opportunity to reach that target before the fade kicked in

Hedera missed the opportunity to reach that target before the fade kicked in

Hedera (HBAR) price has been shooting for the starts but looks to be dropping like a stone now. Just like Icarus, who flew too close to the sun, this time, Hedera came just not close enough to the projected price target for this rally.

Read more

Central bank fest as dollar continues its decline

Central bank fest as dollar continues its decline

The focus this week is the Federal Reserve meeting, the Bank of England rate decision and Monetary Policy Report and the ECB meeting. This troika of central bank decisions could set the tone for the rest of the year: the Federal Reserve passing the baton of global leader when it comes to tightening monetary policy.

Read more

Forex MAJORS

Cryptocurrencies

Signatures