Further beneficial properties in GBP/USD rely on a breakout of the 1.1440 stage in the close to term, advise UOB Group’s Markets Strategist Quek Ser Leang and Economist Lee Sue Ann.
24-hour view: “We anticipated GBP to ‘trade sideways between 1.1280 and 1.1440’. GBP consequently traded inside a vary of 1.1257/1.1410 earlier than closing at 1.1319 (-0.34%). The charge moves nevertheless show up to be phase of a consolidation and we anticipate GBP to change between 1.1260 and 1.1420 for today.”
Next 1-3 weeks: “There is no trade in our view from the day before today (18 Oct, spot at 1.1355) whereby the chance for GBP stays on the upside however it has to spoil absolutely above 1.1440 earlier than in addition sustained increase is likely. The subsequent resistance above 1.1440 is at 1.1500. Overall, solely a wreck of 1.1220 (no alternate in ‘strong support’ stage from yesterday) would point out that GBP is no longer strengthening further.”