FX Strategists at UOB Group noted that a move above 1.3070 should leave the mid-1.2800s as an interim low in Cable.
24-hour view: “The rapid improvement in upward momentum that sent GBP to high of 1.3018 was unexpected. The swift advance appears to be running ahead of itself but there is room for GBP to probe the 1.3030 resistance. For today, a rise beyond 1.3070 is not expected. On the downside, a breach of 1.2950 (minor support at 1.2980) would indicate the current upward pressure has eased.”
Next 1-3 weeks: “We highlighted on Monday (24 Feb, spot at 1.2950) that an “interim bottom is in place” and expected GBP to ‘trade sideways between 1.2850 and 1.3030’. While GBP is approaching the top of the expected range at 1.3030, there is no marked improvement in momentum. That said, a move above 1.3030 is not ruled out but only a clear break of 1.3070 would indicate that last week’s low at 1.2849 could hold for longer than expected.”
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.