GBP/USD: Unlikely to reach 1.3620 for now – UOB Group
Further rebound is not ruled out, but Pound Sterling (GBP) is unlikely to reach 1.3620 against US Dollar (USD). In the longer run, GBP appears to have moved into a 1.3495/1.3620 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
GBP appears to have moved into a 1.3495/1.3620 range
24-HOUR VIEW: "GBP plummeted to a low of 1.3458 two days ago and then rebounded. Yesterday, when GBP was at 1.3500, we highlighted that 'while further GBP weakness is not ruled out today, oversold conditions suggest that any decline may be limited to a retest of the 1.3460 level.' While GBP subsequently dropped to 1.3466, it rebounded strongly, reaching a high of 1.3568 in the late NY session. Further rebound is not ruled out, but given the overbought conditions, any advance is unlikely to reach 1.3620 (there is another resistance at 1.3600). Support levels are at 1.3535 and 1.3515."
1-3 WEEKS VIEW: "Yesterday (11 Jun, spot at 1.3500), we noted 'a tentative increase in downward momentum.' We indicated that GBP 'is likely to trade with a downward bias toward 1.3430.' We pointed out that 'the downward bias will remain intact as long as the ‘strong resistance’ level at 1.3580 is not breached.' GBP subsequently dropped to 1.3466 and then rebounded strongly to close 0.29% higher at 1.3566. While our ‘strong resistance’ level has not been breached yet, downward momentum has largely faded. GBP appears to have moved into a rangetrading phase, and is likely to trade between 1.3495 and 1.3620 for now."
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FXStreet Insights Team
FXStreet
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