GBP/USD: A drop to 1.2580 runs out of steam – UOB – by pabspiovano GBPUSD Currencies Majors Banks
now appears mitigated according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.24-hour view: GBP traded between 1.2714 and 1.2789 yesterday, narrower than our expected range of 1.2700/1.2800. The underlying tone has improved somewhat, and GBP is likely to edge higher. In view of the mild upward pressure, any advance is unlikely to threaten the major resistance at 1.2830 . Support is at 1.2755, followed by 1.2725.
Next 1-3 weeks: We have held a negative GBP view for more than a week now . In our latest narrative from last Friday , we noted that “downward momentum has eased somewhat.” However, we indicated that “there is a chance for GBP to drop further to 1.2580.” Downward momentum has eased further, and the chance for GBP to drop to 1.2580 has diminished. However, only a breach of 1.2830 would indicate that the GBP weakness has stabilised.
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