FX Strategists at UOB Group now see Cable testing the 1.3170 in the next weeks.
24-hour view: “We expected a higher GBP yesterday but the break of the strong 1.3105 resistance came as a surprise (overnight high of 1.3124). While the rally has moved into overbought territory, there is no sign of weakness just yet and GBP could stills strengthen from here. The next resistance is at 1.3170 but this level could be just out of reach for now (minor resistance is at 1.3145). On the downside, we expect 1.3045 to be strong enough to hold any intraday pull-back (minor support is at 1.3075)”.
Next 1-3 weeks: “We have held the same view since Tuesday (11 Sep, spot at 1.3025) wherein the current rebound in GBP could extend to 1.3170. The price action over the past couple days bodes well for our view and 1.3170 appears to be within reach sometime next week. At this stage, we still do not expect a sustained move above this level but the odds for further upward extension have increased. On the downside, the ‘key support’ is raised to 1.3000 from 1.2900 previously”.
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 securities. 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 Forex 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.