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GBP/USD maintains positive outlook so far – UOB

The positive prospects for the GBP/USD remain on the short-term horizon, said economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group.

24 hour outlook: “Last Friday we highlighted that the price move was likely part of a consolidation and we expected the pound to trade within a range of 1.1485/1.1625. Our view on consolidation was not wrong, although the pound traded within a range tighter than expected (1.1504/1.1622) The underlying tone has tightened a bit and the bias for today is to the upside. However, a sustained rally above 1.1645 is unlikely (next resistance is at 1.1700). To the downside, a break of 1.1525 (minor support is at 1.1560) would indicate that the current slight upside pressure has subsided.”

Next 1 to 3 weeks: “Early last week we turned positive on the pound. In our latest account last Thursday (Oct 27, pair at 1.1630), we indicated that the pound remains strong and noted that the next level to watch is at 1.1760. Since then the pound has not been able to make much headway higher. However, we remain positive for now and only a break of 1.1440 (no change from last Friday’s ‘strong support’ level) would indicate no still moving in. That being said, as the bullish momentum has subsided, the odds of the pound advancing to the main resistance at 1.1760 have diminished“.

Source: Fx Street

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