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There is scope for a further decline below 1.3300 – UOB

Forex strategists in UOB Group suggested that the Pound could break below the 1.3300 level and attempt a test of 1.3260 in the near term.

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24-hour perspective: “Yesterday, we highlighted that the downward pressure had eased and that coupled with the oversold conditions suggested that the current move is part of a consolidation phase, and we expected the GBP to trade within a 1.3300 / 1.3365 range. Subsequently, the pound traded between 1.3288 and 1.357 before closing little changed at 1.3318 (-0.09%). We continue to see the current movement as part of a consolidation and We expect the pair to trade between 1.3285 and 1.3360 today. “

Next 1-3 weeks: “Our update from yesterday (Nov 29, even at 1.3330) still stands. As highlighted, there is room for the pound to drop to 1.3260. At this stage, a sustained decline below this level is unlikely. On the upside, a break of 1.3390 (unchanged from the ‘strong resistance’ level) would indicate that the weakness in GBP that started early last week has run its course. “

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