According to Quek Ser Leang, Market Strategist at UOB Group, and Peter Chia, Senior Currency Strategist, GBP/USD is expected to move within the 1.2100/1.2380 range in the coming weeks.
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24-hour outlook: After GBP/USD fell to a low of 1.2111 on Wednesday, we noted yesterday that “although GBP/USD weakness has not really stabilized, bearish momentum is showing tentative signs of slowing.” GBP/USD not only failed to test the 1.2100 level, but rebounded strongly and posted its biggest daily rise in a month (close at 1.2202, +0.55%). The strong bounce could extend to 1.2250 before stabilizing. The next resistance at 1.2300 is unlikely to be threatened. Support is at 1.2170, followed by 1.2145.
Next 1-3 weeks: Yesterday, GBP/USD rebounded strongly and surpassed our “strong resistance” level of 1.2220. The breakout of the “strong resistance” level means that the GBP/USD weakness that began earlier this month is finally over. The current price movement is likely to be the start of a consolidation phase. Given last month’s sharp decline, GBP/USD could consolidate in a relatively wide range of 1.2100/1.2380 for the time being.
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.
