GBP/USD now faces some consolidation – UOB


Cable is likely to move within the 1.2280-1.2480 range in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “We noted the ‘oversold conditions and slowing momentum’ yesterday and expected GBP ‘to consolidate between 1.2250 and 1.2365’. GBP dipped to a low of 1.2258 before staging a surprisingly strong and sharp rebound that hit an overnight high of 1.2402. The rapid advance appears to be running ahead of itself but is not showing any sign of weakness just yet. From here, GBP could edge above the overnight high but any advance is viewed as part of a higher trading range of 1.2335/1.2430 (a sustained move above 1.2430 is not expected).”

Next 1-3 weeks: “After dropping sharply for a few days in a row, the sudden and sharp bounce in GBP yesterday came as a surprise. The rebound edge above our 1.2400 ‘strong resistance’ level (high of 1.2402) and the weak phase that started last week is deemed to have run its course. The current movement in GBP is likely the early stages of a consolidation phase. For the next week or so, GBP is expected to trade sideways, likely between 1.2280 and 1.2480.”

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI drops to fresh weekly lows below $39 amid virus risks, IEA forecast

WTI (August futures on Nymex) extends the steep declines seen on Thursday to drops over 1.50% in the European session this Friday. The oil bears breach the 39 level to hit the lowest levels in eight days at 38.76.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures