The British Pound (GBP) is likely to trade in a range, probably between 1.2810 and 1.2890. Bearish momentum is building, and the GBP could also trade with a bearish bias towards 1.2780, say FX Strategists at UOB GroupQuek Ser Leang and Peter Chia.
The nearest resistance is at 1.2890
24 HOURS VIEW:”Yesterday, we expected the Pound to consolidate in a range of 1.2850/1.2895. However, the GBP fell below the support at 1.2850, hitting a low of 1.2807. The GBP then bounced off the low, closing virtually unchanged (1.2860, -0.05%). The price movements did not result in a significant increase in bearish momentum. Today, the Pound is likely to trade in a range, probably between 1.2810 and 1.2890.”
OUTLOOK 1-3 WEEKS:”We stated last Friday (July 26, pair at 1.2855) that ‘bearish momentum is increasing, but at this point, it is premature to expect a significant decline.’ We added, ‘Overall, As long as the ‘strong resistance’ (current level at 1.2920) is not overcome, GBP is expected to trade with a bearish bias towards 1.2780.’Yesterday, GBP fell to a low of 1.2807 before rebounding. Although the bearish momentum has not improved much further, we still hold the same view for now. That said, the ‘strong resistance’ level has come down to 1.2910.”
Source: Fx Street
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