GBP/USD could stretch out the bounce back to the 1.2580 zone in the close to term, note UOB Gathering’s Business sectors Planner Quek Ser Leang and Financial specialist Lee Sue Ann.
24-hour view: Recently, we maintained the point of view that “the outsized meeting is seriously overextended, however GBP could ascend to 1.2530 prior to evening out off.” Our view was mistaken. Rather than ascending to 1.2530, GBP dropped to a low 1.2404. GBP seems to have entered a solidification stage, and it is probably going to exchange a scope of 1.2380/1.2480 today.
Next 1-3 weeks: We featured yesterday (15 Nov, spot at 1.2490) that GBP is probably going to keep on progressing, however it needs to break obviously above 1.2580 before a further supported ascent is possible. We didn’t exactly anticipate that GBP should pullback to a low of 1.2400. All things considered, we keep on having a similar point of view. Just a break of 1.2350 (no adjustment of ‘solid help’ level from yesterday) would show that GBP isn’t progressing further.