According to currency strategists at the UOB Group, further rise in GBP/USD appears to be losing momentum in the short term.
Key comments
24 hour view: “Yesterday we highlighted that GBP/USD ‘could drop below 1.3500 first before stabilization is likely’. And added that ‘next support at 1.3470 is unlikely to be threatened’. Our view was not wrong as GBP/USD dipped to 1.3492 before rallying. Current move is seen as part of a consolidation phase and GBP/USD is likely to move sideways today. Expected to be between 1.3500 and 1.3570.”
Next 1-3 weeks: “We continue to hold the same view as yesterday (Feb 7, GBP/USD at 1.3530). As highlighted, while the upside momentum is starting to wane, there is a chance, though not high, for GBP/USD to rise higher at 1.3645. However, a break of 1.3470 (‘strong support’) would indicate that the risk of another move higher has dissipated.”
Source: Fx Street
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