GBP/USD sticks to the consolidative view – UOB

Pablo Piovano FXStreet

Cable is expected to gravitate between 1.3080 and 1.3280 in the next 1-3 weeks, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that the up-move in GBP appears to be running ahead of itself but a “test of 1.3220 would not be surprising”. GBP rose to a high of 1.3227 but the up-move was short-lived. Despite the pullback from the high, the undertone has improved even though any advance from here is unlikely to move clearly beyond 1.3255 (1.3230 is already quite a strong resistance). Support is at 1.3180 but the stronger level is at 1.3155”.

Next 1-3 weeks: “GBP slipped to a low of 1.3087 last Friday but rebounded strongly and ended the day on a positive note. While the undertone has weakened somewhat, we continue to hold a neutral view for this pair. The current movement is viewed as part of a consolidation phase even though the immediate bias is for GBP to edge lower and test the bottom of the expected 1.3080/1.3280 consolidation range. At this stage, a sustained move below this level is not expected”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.