The British Pound (GBP) is expected to trade in a sideways range of 1.2940/1.2995. Long-term, bearish momentum is waning; If the GBP breaks above 1.3000, it would indicate that the GBP is not declining further, point out UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
GBP has a chance to break above 1.3000
24 HOUR VIEW: “We expected GBP to trade sideways between 1.2930 and 1.2990 yesterday. It subsequently traded in a higher range of 1.2942/1.3001, closing virtually unchanged at 1.2972. The price action still appears to be part of a sideways trading phase. Today, we expect GBP to trade in a range of 1.2940/1.2995.”
1-3 WEEK VIEW: “Yesterday (Oct 28, pair at 1.2960), we indicated that ‘bearish momentum is waning, and if GBP breaks above 1.3000 (‘strong resistance’ level), it would indicate that GBP it’s not decreasing any more.’ In NY trading, GBP briefly rose to 1.3001, retreating to close little changed at 1.2972 (+0.09%). As our ‘strong resistance’ has not been clearly overcome, we will continue to maintain the same view for now. “This, the probability of the GBP declining further is not high.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
