He GBP/USD could return to the 1.2720 area in the near term, according to market strategist Quek Ser Leang and senior currency strategist Peter Chia of UOB Group.
24 hour perspective: We expected the Pound to trade sideways in a 1.2795/1.2865 range yesterday. We were wrong as the GBP fell as low as 1.2742 before quickly rebounding. The bearish pressure has eased on the quick bounce, and the low of 1.2742 could be a low for now. With that being said, it is too early to expect a major reversal. Today, Pound is likely to trade in a range, probably between 1.2755 and 1.2850.
Next 1-3 weeks: Our most recent update was from last Friday (July 28, pair at 1.2800). In our update, we noted that although bearish momentum was picking up again, it remained to be seen if the Pound could break the main support at 1.2720. Yesterday the GBP fell as low as 1.2742 before rebounding quickly. Although no clear increase in momentum is observed, there is still a possibility that the pound falls to 1.2720. All in all, we expect it to trade with a bearish bias as long as it remains below 1.2880 (‘strong resistance’ level previously at 1.2900).
Source: Fx Street
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