GBP/USD: Upward momentum is slowing – UOB Group
Pound Sterling (GBP) is likely to trade in a range between 1.2845 and 1.2930. In the longer run, upward momentum is slowing; a breach of 1.2830 would mean that the 1.2975 target is out of reach this time around, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Below 1.2830, the 1.2975 target is out of reach
24-HOUR VIEW: "Last Friday, GBP rose to a high of 1.2945. Yesterday, Monday, when GBP was at 1.2930, we highlighted the following: 'Although there has been no clear increase in upward momentum, there is a chance for GBP to test the major resistance at 1.2975 before the risk of a pullback increases. A sustained break above 1.2975 appears unlikely. On the downside, should GBP break below 1.2870 (minor support at 1.2900), it would suggest that it has moved into a range trading phase.' However, GBP rose less than expected, pulling from 1.2946 to 1.2862. Today, we expect GBP to trade in a range between 1.2845 and 1.2930."
1-3 WEEKS VIEW: "In our most recent narrative from last Thursday (07 Mar, spot at 1.2890), we highlighted that “the outlook for GBP remains positive” and 'the next technical target is at 1.2975.' Yesterday, Monday, GBP rose slightly above last week’s high of 1.2943 and then pulled back to close lower by 0.33% at 1.2879. Upward momentum is slowing, and a breach of 1.2830 (no change in ‘strong support’ level from yesterday) would mean that 1.2975 is out of reach this time around."
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