In the opinion of the FX strategists of the UOB Group, the cable is likely to operate with a slight downward bias and with resistance starting at 1.300.
24 hour view: “The sudden increase in volatility was a surprise, as the GBP reached a maximum of 1.3024 before falling rapidly at the end of the day in 1.2949 (+ 0.22%). Irregular price actions have led to a mixed picture. Today the British pound could continue to trade erratically, probably between 1.2900 and 1.3020 “.
The next 1-3 weeks: “Last Friday (October 16, point 1.2905), we maintained the opinion that the GBP “could operate in a slightly defensive mode with 1.3050 acting as a strong resistance. “The GBP rose to a high of 1.3024 yesterday (October 19), and although the downward pressure has eased, only a break of 1.3050 would indicate that GBP is not ready to test main support at 1.2845. In other words, there is no change in our opinion for now. That said, in order to rejuvenate the current downturn, the GBP has to move and stay below 1.2900 within these for 1 to 2 days or the odds of a 1.2845 test will decrease rapidly.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
