GBP/USD: Unlikely to break clearly above 1.3525 – UOB Group

FXStreet Insights Team FXStreet

Rebound in Pound Sterling (GBP) has scope to extend but is unlikely to break clearly above 1.3525. In the longer run, GBP is expected to continue range-trading; a narrower range of 1.3400/1.3525 is likely sufficient to contain price movements, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

GBP is expected to continue range-trading

24-HOUR VIEW: "Yesterday, we held the view that GBP 'may continue to decline toward 1.3400.' However, we pointed out that 'based on the current momentum, a clear break below this level appears unlikely.' The subsequent price movements did not turn out as expected, as after dropping to a low of 1.3417, GBP rebounded strongly to a high of 1.3489. The strong rebound has scope to extend, but this time around, based on the current momentum, a clear break above the major resistance at 1.3525 is unlikely. Note that there is another resistance level at 1.3500. On the downside, support levels are at 1.3460 and 1.3435."

1-3 WEEKS VIEW: "Our most recent narrative was from one week ago (30 Sep, spot at 1.3435), in which we stated that GBP 'is likely to trade in a range between 1.3360 and 1.3525.' We continue to expect range-trading, but a narrower range of 1.3400/1.3525 is likely sufficient to contain the price movements for now."

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FXStreet Insights Team

FXStreet

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