Currency strategists at the UOB Group point out that a move to 1.3645 in GBP/USD seems to be losing traction short term.
Key comments
24 hour view: “Yesterday we expected GBP/USD to ‘trade sideways within a range of 1.3515/1.3575’. However, GBP/USD rose to a high of 1.3590 before turning lower again to end the day little changed in 1.3536 (-0.08%) Underlying sentiment has softened a bit and the bias is to the downside That said, any decline is unlikely to break strong support at 1.3485 (minor support is at 1.3515) Resistance is at 1.3555, followed by 1.3580.”
Next 1-3 weeks: “We have held the same view since Monday (Feb 7, GBP/USD at 1.3530). As highlighted, while the bullish momentum is starting to wane, there is a chance, albeit not a high one, for GBP/USD to rise at 1.3645 No change in our view for now, though after moving sideways for a few days the upside momentum has further diminished and the chance of GBP/USD moving to 1.3645 has diminished To rejuvenate momentum GBP/USD needs to move and hold above 1.3590 in these one to two days or a break of 1.3490 (‘strong support’ was at 1.3470 yesterday) would indicate GBP/USD is not ready to go up to 1.3645.”
Source: Fx Street
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