According to Lee Sue Ann, Economist at UOB Group, and Quek Ser Leang, Market Strategist, GBP/USD should find strong support around 1.2120 In the next weeks.
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24 hour view: “Our view that the ‘GBP/USD rally would extend’ was incorrect as it plunged as low as 1.2222 before closing weakly at 1.2225 (-1.22%). Strong bearish momentum suggests further GBP/ weakness USD, although the main support at 1.2120 is unlikely to be threatened today (minor support is at 1.2160) On the upside, breaking above 1.2290 (minor resistance is at 1.2260) would indicate that GBP/USD weakness has stabilized.”
Next 1-3 weeks: “Yesterday (Feb 2, GBP/USD at 1.2385), we highlighted that while the bullish momentum is starting to consolidate, GBP/USD needs to break and hold above 1.2450 before a sustained advance is likely. However , GBP/USD slumped and quickly broke our “strong support” level at 1.2300.The rapidly rising momentum has shifted risk to the downside, but any decline is expected to be met with solid support at 1.2130.Overall , only a break of 1.2320 would indicate that the rapidly increasing bearish momentum has faded.”
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.
