GBP / USD between 1.2845 and 1.3120 in the short term – UOB

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The Libra maintains mixed perspective unchanged and expected to trade within the range of 1.2845-1.3120 in the near term, currency strategists from UOB Group.

24 hour perspective: “Yesterday, we held the view that the GBP could weaken to 1.2890, qualifying that the outlook for a breakout of last week’s low at 1.2845 was not high. While our view was not wrong, as the pound fell to a 1.2865 low, the subsequent sharp rise from the low was unexpected (1.3065 high). The rapid rise appears to be ahead of itself, but there is scope for me to test the 1.3080 resistance first before a more sustained pullback can be expected. For today, it is unlikely to move beyond 1.3120. Support is at 1.2970, the strongest level is at 1.2940 ”.

Next 1-3 weeks: “Yesterday we indicated that the GBP was under slight bearish pressure and could turn down and probe the support at 1.2820. Subsequently, the British pound fell to 1.2865 before rising to a high of 1.3065. The breakout of our strong resistance at 1.3055 indicates that the downward pressure has dissipated. The rapid swings have resulted in a mixed outlook and from here the pound could trade between 1.2845 and 1.3120 over a period of time“.

Credits: Forex Street

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