Prospects for GBP/USD to break above the 1.3300 barrier seem to have run out of steam in recent days, according to currency strategists at UOB Group.
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24 hour view: “We expected GBP/USD to strengthen yesterday, but opined that ‘major resistance at 1.3325 is likely out of reach’. We noted ‘minor resistance at 1.3300’. GBP/USD subsequently rose to 1.3299 before seeing a surprisingly strong and quick sell off (low 1.3175).The rapid decline appears to be overdone and GBP/USD is unlikely to weaken much further.For today, GBP/USD is more likely to trade between 1.3160 and 1.3260.”
Next 1-3 weeks: “Yesterday (Mar 23, GBP/USD at 1.3265), we highlighted strong momentum likely to lead to further strength in GBP/USD at 1.3325 and possibly 1.3365. GBP/USD subsequently rose to 1.3299 before falling sharply to a low of 1.3175.While our ‘strong support’ level at 1.3160 was not broken, the rapid loss of momentum has diminished the chances of GBP/USD advancing to 1.3325.In order to rejuvenate momentum, GBP/ USD needs to move and hold above 1.3260 or a break of 1.3160 would not be surprising Looking ahead, a break of 1.3160 would indicate that the GBP/USD strength that started late last week is over.”
Source: Fx Street
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