GBP/USD might trade between 1.3045 and 1.3120 – UOB Group
Outlook is mixed; Pound Sterling (GBP) could trade between 1.3045 and 1.3120. In the longer run, there is room for GBP to test the significant support level at 1.3000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Room for GBP to test the significant support level at 1.3000
24-HOUR VIEW: "GBP fell sharply to a low of 1.3043 on Wednesday. Yesterday, Thursday, we stated that GBP 'could decline further', but we pointed out that 'deeply oversold conditions suggest it is unlikely to break below the major support at 1.3000'. We were incorrect, as after dipping to a low of 1.3040, GBP rebounded strongly to a high of 1.3124. GBP dropped back down from the high to close modestly higher at 1.3069 (+0.09%). The outlook for today is mixed after the choppy price movements. Today, GBP could trade between 1.3045 and 1.3120."
1-3 WEEKS VIEW: "Yesterday (20 Nov, spot at 1.3060), we highlighted that 'there is room for GBP to test the significant support level at 1.3000'. We also highlighted that 'to keep the momentum going, GBP must hold below 1.3150 (‘strong resistance’ level)'. Our view remains unchanged for now."
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