GBP/USD: Likely to trade in a sideways range of 1.3540/1.3640 – UOB Group

Source Fxstreet

Pound Sterling (GBP) is likely to trade in a sideways range of 1.3540/1.3640 against US Dollar (USD). In the longer run, the likelihood of GBP dropping to 1.3510 is increasing, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Likelihood of GBP dropping to 1.3510 is increasing

24-HOUR VIEW: "GBP dropped to a low of 1.3576 two days ago and then closed at 1.3602. When GBP was at 1.3625 in the early Asian session yesterday, we stated that 'despite the decline, downward momentum has not increased significantly, and instead of continuing to weaken, GBP is more likely to consolidate in a range of 1.3580/1.3660.' The subsequent price movements did not turn out as we expected. GBP rose to 1.3647, plummeted to 1.3528 before snapping back up to close largely unchanged at 1.3592 (-0.06%). The brief drop did not lead to any increase in downward momentum. GBP is likely to trade sideways today, probably in a range of 1.3540/1.3640."

1-3 WEEKS VIEW: "Last Thursday (03 Jul, spot at 1.3650), we indicated that 'short-term downward momentum is increasing, but it is not strong enough to indicate a sustained decline just yet.' We also highlighted that 'for a continued down-move, GBP must first close below 1.3560.' After GBP dropped to a low of 1.3576 on Monday, we indicated yesterday (08 Jul, spot at 1.3625) that 'while downward momentum has increased further, we prefer to wait for GBP to close below 1.3560 before expecting a move to 1.3510.' GBP subsequently dropped to a low of 1.3528 before recovering to close at 1.3593. Downward momentum continues to build, albeit not by much. That said, the likelihood of GBP dropping to 1.3510 is increasing. Overall, only a breach of 1.3680 (‘strong resistance’ level was at 1.3700 yesterday) would indicate that the current downward bias has faded."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum Price Forecast: ETF inflows blow past $4 billion as whales accumulate 1.44 million ETH in AugustEthereum (ETH) remained muted near $4,500 on Thursday despite sustained accumulation from institutional investors and whales over the past few days.
Author  FXStreet
Aug 29, Fri
Ethereum (ETH) remained muted near $4,500 on Thursday despite sustained accumulation from institutional investors and whales over the past few days.
placeholder
Cardano Price Forecast: ADA finds support as network growth fuels bullish outlookCardano (ADA) shows signs of recovery, trading around $0.85 on Friday after finding support around its previously broken trendline earlier this week.
Author  FXStreet
Aug 29, Fri
Cardano (ADA) shows signs of recovery, trading around $0.85 on Friday after finding support around its previously broken trendline earlier this week.
placeholder
US core PCE inflation set to rise 2.9% YoY in July amid rising bets of Fed rate cut in SeptemberThe United States Bureau of Economic Analysis (BEA) will publish the Personal Consumption Expenditures (PCE) Price Index data for July on Friday at 12:30 GMT. 
Author  FXStreet
Aug 29, Fri
The United States Bureau of Economic Analysis (BEA) will publish the Personal Consumption Expenditures (PCE) Price Index data for July on Friday at 12:30 GMT. 
placeholder
Solana Price Hits 6-Month High, Unbothered By $432 Million SellingSolana has surged to a six-month high, continuing its strong uptrend in the broader crypto market.
Author  Beincrypto
Aug 29, Fri
Solana has surged to a six-month high, continuing its strong uptrend in the broader crypto market.
placeholder
Forex Today: US Dollar stabilizes ahead of key PCE inflation dataThe US Dollar (USD) finds a foothold early Friday after posting losses for three consecutive days.
Author  FXStreet
Aug 29, Fri
The US Dollar (USD) finds a foothold early Friday after posting losses for three consecutive days.
Related Instrument
goTop
quote