Price action continues to suggest upside risk, so there’s room for the Pound Sterling (GBP) to grow towards the next major resistance at 1.2900, UOB Group FX analysts Quek Ser Leang and Peter Chia note.
The next level to watch is at 1.2900
24-HOUR VIEW: “Our expectation for GBP to trade in a sideways range of 1.2770/1.2820 yesterday was incorrect. Instead of trading sideways, GBP rose sharply to a high of 1.2849. Upward momentum is building, and today GBP broke above 1.2860, so the next major resistance is at 1.2900. To maintain the momentum buildup, GBP must not break below 1.2805, with minor support at 1.2825.”
1-3 WEEKS VIEW: “On Monday (08 Jul, spot at 1.2805), we indicated that ‘the risk for GBP remains on the upside, and the level to watch is 1.2860.’ We added, ‘if GBP breaks below 1.2750, it would mean that the upside risk from last Thursday has faded.’ Yesterday, GBP rose and closed at a 4-month high of 1.2849 (+0.48%). The price action continues to suggest upside risk. The next level to monitor is 1.2900. On the downside, the ‘strong support’ level has moved higher to 1.2775 from 1.2750.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
