Strong momentum appears to be slowing; Pound Sterling (GBP) is likely to trade in a 1.2850/1.2925 range vs US Dollar (USD). In the longer run, outlook for GBP remains positive; the next technical target is at 1.2975, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The next technical target for GBP/USD is at 1.2975
24-HOUR VIEW: “Following the strong rise in GBP two days ago, we indicated yesterday that ‘although deeply overbought, GBP appears to have enough momentum to rise further.’ We pointed out, ‘The levels to monitor are 1.2930 and 1.2975.’ However, GBP rose less than expected to 1.2924. It ended the day largely flat at 1.2882 (-0.09%). The strong upward momentum over the past few days appears to be slowing. Today, we expect GBP to trade in a 1.2850/1.2925 range.”
1-3 WEEKS VIEW: “We stated yesterday (07 Mar, spot at 1.2890) that ‘the outlook for GBP remains positive.’ We highlighted that ‘the next technical target is at 1.2975.’ There is no change in our view. On the downside, a breach of 1.2780 (‘strong support’ level was at 1.2760 yesterday) would mean that GBP is not strengthening further.”
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