According to the currency strategists of UOB Group, the price action of the pound has the potential to return towards the 1.2850 area in the coming weeks.
24 hour perspective: “The GBP traded between 1.2900 and 1.2988 last Friday (within last Thursday’s range) and posted a day of inside trading. Price actions suggest the pound is undecided for now. That said, the underlying tone is a bit smooth and this could lead to a downward drift, but any decline is unlikely to break last week’s low near 1.2880 (minor support is at 1.2900). Resistance is at 1.2960 followed by 1.2990 ”.
Next 1-3 weeks: “Last Thursday (Oct 29, pair at 1.3025), we held the view that while bearish momentum had improved somewhat, it was premature to expect a clear break from solid support at 1.2900. However, the pound subsequently fell to a low of 1.2882 before picking up. The downside momentum has improved further but still looks lackluster for now. From here on, the British pound is seen to be under slight downward pressure and could gravitate towards the main support at 1.2845. On the upside, a break of 1.3030 would indicate that the current slight downward pressure has eased. ”
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Credits: Forex Street
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