Market news
04.09.2023, 06:10

GBP/USD now faces downside risks – UOB

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group suggest GBP/USD is predicted to meet a tough support around 1.2545 ahead of 1.2500.

Key Quotes

24-hour view: After rising briefly to a high of 1.2712 last Friday, it plunged to a low of 1.2578 before closing on a weak note at 1.2590 (-0.65%). Unsurprisingly, the sharp drop has resulted in an increase in downward momentum. Today, GBP is likely to weaken further, but oversold conditions suggest it might not be able to break clearly below 1.2545 (next support is at 1.2500). Resistance is at 1.2620, followed by 1.2645.  

Next 1-3 weeks: In our most recent narrative from last Thursday (31 Aug, spot at 1.2715), we held the view that “there is a chance for GBP to rise to 1.2800, with a lower possibility of reaching 1.2845.” Our view was invalidated quickly, as GBP plunged on Friday and took out our ‘strong support’ level at 1.2630. The risk appears to have shifted to the downside. However, as downward momentum is only beginning to build, any weakness is likely to face solid support at 1.2500 (there is another strong support at 1.2545). Resistance-wise, if GBP breaks above 1.2680, it would mean that the buildup in momentum has faded.  

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location