GBP/USD still risks a drop to 1.2040 – UOB
GBP/USD maintains the downside pressure well in place and could revisit the 1.2040 zone in the near term, note UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.
Key Quotes
24-hour view: We expected GBP to trade in a range between 1.2100 and 1.2170 last Friday. Our view of range trading was not wrong, even though it traded in a narrower range than anticipated (1.2106/1.2163). GBP then closed largely unchanged at 1.2123 (-0.04%). The consolidative price action suggests further range trading today, albeit likely in a lower range of 1.2085/1.2155.
Next 1-3 weeks: Last Thursday (26 Oct, spot at 1.2105), we highlighted that downward momentum is beginning to improve, and we were of the view that GBP is likely to test the early October near 1.2040. While GBP has not been able to make much headway on the downside and downward momentum has waned somewhat, there is still room for GBP to test 1.2040. Overall, only a breach of 1.2180 (‘strong resistance’ level previously at 1.2200) would indicate that the current downward pressure has faded.
Reprinted from FXStreet_id，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.