The British Pound (GBP) is likely to trade in a range of 1.2650/1.2700 against the US Dollar. The slowdown in momentum suggests a low probability of GBP weakening to 1.2600, according to analysts at UOB Group.
A break of 1.2705 would signal that the British Pound has stabilized
24 HOUR PERSPECTIVE: “On Monday, the GBP bounced to a high of 1.2698. Yesterday (Tuesday), we indicated that ‘the robust rebound appears to be overextended, and rather than rising further, the Pound is more likely to trade in a range today, probably between 1.2650 and 1.2705.’ Our range trading view was not wrong, although the pair traded in a narrower range of 1.2670/1.2702. GBP/USD closed virtually unchanged at 1.2686 (+0.01%). in range, probably in a range of 1.2650/1.2700.”
1-3 WEEK VISION: “We have maintained a negative view on the Pound since the beginning of last week. After the GBP bounced two days ago, we highlighted yesterday (June 25, pair at 1.2680) that ‘Slowdown in momentum suggests low probability of currency weakening to 1.2600.’ We continue to maintain the same vision. Overall, only a break of 1.2705 (with no change to the ‘strong resistance’ level) would indicate that the weakness in the GBP has stabilized.”
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.
