#GBPUSD @ 1.23931 : Upside momentum seems to be losing traction – UOB
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
In the opinion of UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, further strength in GBP/USD could be running out of steam.
24-hour view: “We highlighted last Friday that ‘while upward momentum has waned, there is room for GBP to test 1.2450 first before the risk of a more sustained pullback increases’. However, GBP did not test 1.2450 as it traded between 1.2346 and 1.2419 before closing modestly lower at 1.2400 (-0.01%). The price actions appear to be part of a consolidation phase and GBP is likely to trade sideways today, expected to be between 1.2350 and 1.2425.”
Next 1-3 weeks: “Last Thursday (26 Jan, spot at 1.2400), we highlighted that GBP is likely to edge above 1.2450 but as upward momentum is not strong, it remains to be seen if GBP can break 1.2500. GBP has not been able to make much headway on the upside. Upward momentum has waned but as long as 1.2315 (‘strong support’ level previously at 1.2300) is not breached, there is still a slim chance for GBP to break above 1.2450.”
[/s2If]
Join Our Telegram Group
