GBP/USD: Bulls push towards 1.2890 – UOB Group

The Pound Sterling (GBP) is likely to trade in a range, probably between 1.2810 and 1.2890. Downward momentum is building, and GBP may also trade with a downward bias towards 1.2780, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

The closest resistance is at 1.2890

24-HOUR VIEW: “Yesterday, we expected GBP to consolidate in a range of 1.2850/1.2895. However, GBP fell below the support at 1.2850, reaching a low of 1.2807. GBP then rebounded from the low, closing largely unchanged (1.2860, -0.05%). The price movements did not result in a significant increase in downward momentum. Today, GBP is likely to trade in a range, probably between 1.2810 and 1.2890.”

1-3 WEEKS VIEW: “We indicated last Friday (26 Jul, spot at 1.2855) that ‘downward momentum is building, but at this time, it is premature to expect a significant decline.’ We added, ‘Overall, provided that the ‘strong resistance’ (level currently at 1.2920) is not breached, GBP is expected to trade with a downward bias towards 1.2780.’ Yesterday, GBP fell to a low of 1.2807 before rebounding. While downward momentum has not improved much further, we continue to hold the same view for now. That said, the ‘strong resistance’ level has edged lower to 1.2910.”