GBP/USD: Overbought conditions could limit any advance to a test of 1.2715 – UOB Group
Strong momentum suggests further Pound Sterling (GBP) strength; overbought conditions could limit any advance to a test of 1.2715. In the longer run, outlook has shifted from negative to positive; any advance is likely a recovery, potentially testing the resistance at 1.2755, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
24-HOUR VIEW: “Our view for GBP to trade in a range yesterday was incorrect. Instead of trading in a range, GBP surged, closing higher by 0.89% at 1.2679, its biggest 1-day gain since late Aug. Strong momentum suggests further GBP strength, even though deeply overbought conditions could limit any advance to a test of 1.2715. The major resistance at 1.2755 is likely to be out of reach for now. On the downside, any intraday pullback is expected to face strong support at 1.2620, with minor support at 1.2640.” Read more…
GBP/USD Forecast: Pound Sterling could encounter stiff resistance at 1.2700
Following the choppy action seen earlier in the week, GBP/USD turned north and gained nearly 0.9% on the day on Wednesday. The pair corrects lower early Thursday and trades at around 1.2650.
The US Dollar came under selling pressure in the American session on Wednesday as markets reacted to mixed macroeconomic data releases. Additionally, month-end flows may have been triggered ahead of the Thanksgiving Day holiday in the US, further weighing on the currency. Read more…
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