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GBP/USD: The pair could break above 1.2860 – UOB Group

The British Pound (GBP) is likely to trade in a sideways range of 1.2770/1.2820. The risk for GBP remains on the upside; the level to watch is 1.2860, say FX Strategists at UOB Group Quek Ser Leang and Peter Chia.

The level to watch is 1.2860

24 HOURS VIEW:”Two days ago, GBP rose to 1.2846 and then pulled back. Yesterday, we highlighted that ‘conditions remain overbought; this, combined with signs of slowing momentum, suggests that the Pound is unlikely to strengthen further.’ We were of the view that GBP ‘is more likely to trade in a sideways range of 1.2780/1.2840.’ Our sideways trading view was not incorrect, although the Pound did trade in a tighter range of 1.2778/1.2821. Sideways trading seems likely to continue. However, the slightly softened underlying tone suggests a lower range of 1.2770/1.2820.”

OUTLOOK 1-3 WEEKS:”Our update from Monday (July 08, pair at 1.2805) remains valid. As stated, The risk for GBP remains on the upside, and the level to watch is 1.2860On the downside, if GBP breaks below 1.2750 (no change in the ‘strong support’ level), it would mean that the upside risk from last Thursday has faded.”

Source: Fx Street

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