Quek Ser Leang and Lee Sue Ann of UOB observe that GBP/USD gapped lower after momentarily breaching over 1.3445, with momentum declining and the possibility of a test below 1.3360, but 1.3320 is still viewed as far off. In the upcoming weeks, they anticipate a 1.3320–1.3445 range, with broader 1.3210–1.3655 levels on a 1-3 month horizon, as they believe the gain from late last month has finished.
The pound advance appears to be waning.
"24-HOUR VIEW: We said that "there is a chance for GBP to test the main barrier around 1.3445" last Friday when the currency was at 1.3410. But we believed that "a clear break over this level is improbable." "Support is at 1.3390," we added. After rising above expectations to 1.3452, the GBP had a steep decline to 1.3392 before finishing mostly flat at 1.3402 (-0.05%). The GBP fell in the open market today. GBP may breach below 1.3360, according to the sharp rise in momentum. It is probably impossible to reach the next support at 1.3320. A breach of 1.3410 would indicate that the immediate downward pressure has subsided; resistance is at 1.3390.
"1-3 WEEKS VIEW: Since late last month, we have maintained a constructive view of the GBP (see notes in the chart below). We noted last Thursday, July 9, at 1.3390, that "although the danger remains on the upside, given that there has been no additional increase in upward momentum, it is remained to be seen if GBP can hit 1.3445." We noted on Friday, July 10, at 1.3410, that "upward momentum has strengthened significantly, and should GBP break above 1.3445, the next milestone to watch is 1.3480," following the GBP's increase to 1.3430. The price movements that followed did not exactly go as planned. Before plunging precipitously, the GBP broke over 1.3445 and posted a high of 1.3452. Today, it was still declining. The upward impetus has mostly subsided, even though our "strong support" level at 1.3360 has not been broken yet. In other words, we anticipate GBP to trade in a range between 1.3320 and 1.3445 for the foreseeable being, as the GBP rise from late last month has finished."
The pound advance appears to be waning.
"24-HOUR VIEW: We said that "there is a chance for GBP to test the main barrier around 1.3445" last Friday when the currency was at 1.3410. But we believed that "a clear break over this level is improbable." "Support is at 1.3390," we added. After rising above expectations to 1.3452, the GBP had a steep decline to 1.3392 before finishing mostly flat at 1.3402 (-0.05%). The GBP fell in the open market today. GBP may breach below 1.3360, according to the sharp rise in momentum. It is probably impossible to reach the next support at 1.3320. A breach of 1.3410 would indicate that the immediate downward pressure has subsided; resistance is at 1.3390.
"1-3 WEEKS VIEW: Since late last month, we have maintained a constructive view of the GBP (see notes in the chart below). We noted last Thursday, July 9, at 1.3390, that "although the danger remains on the upside, given that there has been no additional increase in upward momentum, it is remained to be seen if GBP can hit 1.3445." We noted on Friday, July 10, at 1.3410, that "upward momentum has strengthened significantly, and should GBP break above 1.3445, the next milestone to watch is 1.3480," following the GBP's increase to 1.3430. The price movements that followed did not exactly go as planned. Before plunging precipitously, the GBP broke over 1.3445 and posted a high of 1.3452. Today, it was still declining. The upward impetus has mostly subsided, even though our "strong support" level at 1.3360 has not been broken yet. In other words, we anticipate GBP to trade in a range between 1.3320 and 1.3445 for the foreseeable being, as the GBP rise from late last month has finished."
