Instead of continuing to rise, the British Pound (GBP) is more likely to trade in a range between 1.2650 and 1.2705 against the US Dollar. Slowing momentum suggests slim chance of GBP weakening to 1.2600, strategists at UOB Group.
GBP likely to trade between 1.2650 and 1.2705
24-HOUR OUTLOOK: “Yesterday, we were of the view that the Pound ‘could fall towards 1.2600 before the risk of a rebound increased.’ However, after falling to a low of 1.2633, GBP rebounded strongly, reaching a high of 1.2698. The robust rebound appears to be overextended, and instead of continuing to rise, it is further up. Pound likely to trade in a range today, probably between 1.2650 and 1.2705“
1-3 WEEKS VIEW: “We highlighted yesterday (June 24, pair at 1.2640) that the GBP was likely to ‘continue to weaken towards 1.2600.’ We also highlighted that ‘only a break of 1.2705 would mean GBP weakness has stabilized.’ GBP subsequently rebounded strongly, reaching a high of 1.2698. Although our ‘strong resistance’ level at 1.2705 has not yet been surpassed, Slowdown in momentum suggests small chance of GBP weakening to 1.2600. Looking ahead, if 1.2705 is broken, it would indicate that GBP’s weakness since the beginning of last week has stabilized and GBP could trade in a range.”
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.
