Home GBP/USD sticks to the 1.2950-1.3160 range – UOB
FXStreet News

GBP/USD sticks to the 1.2950-1.3160 range – UOB

In opinion of FX Strategists at UOB Group, Cable is expected to navigate within the 1.2950-1.3160 range in the next weeks.

Key Quotes

24-hour view: “Our view for GBP yesterday was that it ‘could trade sideways, likely not straying much out of Friday’s 1.3048/1.3143 range’. While our expectation for sideway trading was not wrong, GBP traded within a surprisingly narrow range (between 1.3074 and 1.3121). The underlying tone has improved somewhat and this could lead to GBP edging higher. That said, the prospect for a break of the solid resistance at 1.3160 is not high (1.3130 is already quite a strong level). On the downside, a breach of 1.3075 would indicate the current mild upward pressure has eased.”

Next 1-3 weeks: “Last Tuesday (11 Aug, spot at 1.3075), we indicated that ‘a short-term top is in place’ and held the view that GBP ‘is likely to drift lower but any weakness is viewed as part of a 1.2950/1.3160 range’. However, aside from a brief dip to 1.3006, GBP traded mostly sideways before popping to a high of 1.3143 last Friday. The mild downward pressure has eased but the current movement is still viewed as part of a consolidation phase. In other words, we continue to hold the view that GBP is trading within a 1.2950/1.3160 range.”

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.