Bearish momentum is building. The British Pound (GBP) is likely to trade with a bearish bias towards 1.2780, say UOB Group FX analysts Quek Ser Leang and Peter Chia.
Bears are likely to test 1.2780 in the near term
24-HOUR VIEW: “Last Thursday, GBP fell to a low of 1.2850. On Friday, we stated that ‘further GBP weakness seems likely.’ We added, ‘To maintain momentum, GBP needs to remain below 1.2895 with minor resistance at 1.2875. Instead of weakening further, GBP traded calmly between 1.2850 and 1.2878 before settling at 1.2866 (+0.12%). The price action appears to be part of a consolidation phase. Today, we expect GBP to trade between 1.2850 and 1.2895.'”
1-3 WEEK VIEW: “We noted last Friday (July 26, spot at 1.2855) that ‘bearish momentum is building, but at this point, it is premature to expect a significant decline.’ We added, ‘Overall, as long as ‘strong resistance’ (currently at 1.2920) is not broken, GBP is expected to trade with a bearish bias towards 1.2780.’ Our view remains unchanged for now.”
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.
