The rise of GBP / USD shows solid resistance at the 1.3050 level, as suggested by the currency strategists of UOB Group.
24 hour perspective: “Our expectation that the British pound would first test 1.3080 before a more sustained pullback could be expected was incorrect as it fell to a low of 1.2891 (the high had been 1.3031). While the dip is oversold, there is not yet. stabilization signals. For today, the pound could weaken even more, but the odds of a clear breakout of the main support at 1.2845 are not high (the next support is at 1.2800). Resistance is at 1.2855 followed by 1.2995 “.
Next 1-3 weeks: “We indicated yesterday (Oct 15, pair at 1.3015) that the rapid swings have resulted in a mixed outlook and that the GBP could trade between 1.2845 and 1.3120 over a period of time. The British pound subsequently gave up most of it. its gains since Wednesday (Oct 14), as it fell to 1.2891 before closing on a weak note at 1.2899 (-0.85%). While the underlying tone has weakened, it is too early to expect a sustained decline below 1.2845 overall, the GBP is likely to trade in a slightly defensive mode with 1.3050 acting as a strong resistance. ”
Credits: Forex Street