According to Lee Sue Ann, Economist at UOB Group, and Quek Ser Leang, Market Strategist, GBP/USD will continue to move sideways over the coming weeks.
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24 hour perspective: On Tuesday, GBP/USD rose to a high of 1.2558. Yesterday (Wednesday), we indicated that “despite the advance, the bullish momentum has not yet shown much improvement.” We maintained the view that “there is room for GBP/USD to continue rising, although 1.2580 remains out of reach for now.” However, GBP/USD did not rise, but instead fell to 1.2450. Bullish pressure has faded and GBP/USD is likely to trade sideways today, probably in a range of 1.2440/1.2530.
Next 1-3 weeks: Our last analysis was from two days ago (November 21, GBP/USD at 1.2505), in which we indicated that “despite the slight increase in momentum, there is still a chance for GBP/USD to rise to 1.2580.” Yesterday, GBP/USD fell and broke below our “strong support” level of 1.2460 (the low has been 1.2450). The break of “strong support” indicates that the GBP/USD strength that began in the middle of last week has ended. GBP/USD appears to have entered a range-bound trading phase and is likely to trade between 1.2360 and 1.2560 for the time being.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
