GBP/USD could now move between 1.2230 and 1.2460 in the coming weeks, UOB Group currency strategists Lee Sue Ann and Quek Ser Leang suggest.
Key comments
24 hour view: “Our expectations for the ‘GBP/USD overbought rally to extend’ were wrong as it staged a surprisingly sharp sell off to as low as 1.2330. The sharp drop has room to dip below 1.2300 but not expected to threaten next support at 1.2230. To the upside, breakout of 1.2405 (minor resistance is at 1.2375) would indicate current bearish pressure has subsided.”
Next 1-3 weeks: “After GBP/USD topped out at 1.2498, we highlighted yesterday that there is room for GBP/USD to move higher to 1.2600. We did not expect the quick and sharp turnaround as GBP/USD tumbled as low as Low of 1.2330 during the New York session. Price volatility has given rise to a mixed picture and GBP/USD could move between 1.2230 and 1.2460 for now.”
Source: Fx Street
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