GBP/USD: Likely to trade sideways between 1.3515 and 1.360 – UOB Group

Source Fxstreet

Current price movements are likely part of a sideways trading phase between 1.3515 and 1.3605. In the longer run, GBP must first close above 1.3640 before a move to 1.3700 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Likelihood of closing above 1.3640 remains intact while above 1.3515

24-HOUR VIEW: "GBP rose sharply and closed higher by 0.58% at 1.3615 last Thursday. On Friday, when GBP was at 1.3600, we pointed out that 'conditions are deeply overbought, and GBP is unlikely to rise much further.' We expected GBP to 'trade in a higher range of 1.3540/1.3640.' However, GBP pulled back to 1.3518 before rebounding to close at 1.3574 (-0.30%). Momentum indicators are turning flat, and the current price movements are likely part of a sideways trading phase, probably between 1.3515 and 1.3605."

1-3 WEEKS VIEW: "We revised our GBP view to neutral last Thursday (12 Jun, spot at 1.3565), stating that GBP 'appears to have moved into a 1.3495/1.3620 range trading phase.' After GBP rose and closed at 1.3616, we highlighted the following last Friday (13 Jun, spot at 1.3600): 'Upward momentum is increasing, but we prefer to wait for a decisive close above 1.3640 before revising our GBP outlook to positive. The likelihood of GBP closing above 1.3640 will remain intact as long as 1.3515 is not breached.' GBP subsequently pulled back close to our ‘strong support’ level of 1.3515, reaching a low of 1.3518. We will maintain our view for now, but after the pullback, the likelihood of GBP closing above 1.3640 has diminished considerably."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Forex Today: GDP releases from major economies, BoC and Fed rate decisions to ramp up volatilityFinancial markets turn relatively quiet early Wednesday as investors gear up for key events.
Author  FXStreet
9 hours ago
Financial markets turn relatively quiet early Wednesday as investors gear up for key events.
placeholder
Google lays off its workforce to significantly invest in AIGoogle encourages its workers to boost their productivity by using AI. 
Author  Cryptopolitan
11 hours ago
Google encourages its workers to boost their productivity by using AI. 
placeholder
On-chain data showed that whales are aggressively accumulating more Bitcoin and EthereumOn-chain data showed that whales are aggressively accumulating more Bitcoin and Ethereum.
Author  Cryptopolitan
11 hours ago
On-chain data showed that whales are aggressively accumulating more Bitcoin and Ethereum.
placeholder
WTI holds near $69.00, five-week highs, following Trump’s renewed threat to RussiaWTI steadies after registering gains in the previous two successive sessions, trading around $68.90 per barrel during the early European hours on Wednesday.
Author  FXStreet
11 hours ago
WTI steadies after registering gains in the previous two successive sessions, trading around $68.90 per barrel during the early European hours on Wednesday.
placeholder
Gold price consolidates in $3,320-3,330 band; looks to Fed for meaningful impetusGold price (XAU/USD) seesaws between tepid gains/minor losses during the Asian session on Wednesday.
Author  FXStreet
11 hours ago
Gold price (XAU/USD) seesaws between tepid gains/minor losses during the Asian session on Wednesday.
goTop
quote