GBP/USD remains below 1.3335 – UOB Group
Provided Pound Sterling (GBP) remains below 1.3335 against US Dollar (USD), it could edge lower to 1.3265. 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.
Price movements are part of a 1.3240/1.3450 range-trading phase
24-HOUR VIEW: "Two days ago, GBP soared to 1.3402 and then pulled back sharply. Yesterday, when GBP was at 1.3350, we indicated that 'the 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.' Instead of trading in a 1.3300/1.3400 range, GBP dropped to a low of 1.3281, closing on a soft note at 1.3290 (-0.60%). There has been a slight increase in downward momentum, but it is not sufficient to suggest a sustained decline. Today, provided that GBP remains below 1.3335 (minor resistance is at 1.3320), it could edge lower to 1.3265. A dip below this level is not ruled out, but based on the current momentum, any further decline is unlikely to reach the major support at 1.3240."
1-3 WEEKS VIEW: "We indicated yesterday (07 May, spot at 1.3350) that 'The current price movements as part of a 1.3240/1.3450 range-trading phase.' There is no change in our view. That said, the slight increase in short-term downward momentum indicates the increasing risk of GBP breaking below 1.3240."
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FXStreet Insights Team
FXStreet
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