GBP/USD closed at 1.3678, with expectations for consolidation between 1.3620 and 1.3715. The report signifies that whereas there was a current upward motion, situations stay overbought, suggesting restricted additional advances. The subsequent resistance ranges are at 1.3715 and 1.3725. UOB Group Senior Technical Strategist Quek Ser Leang and Economist Lee Sue Ann notes.
GBP more likely to consolidate
“24-HOUR VIEW: Whereas we anticipated GBP to strengthen yesterday, we highlighted that “given the deeply overbought situations, any advance is probably going half of a better vary of 1.3590/1.3700.” We additionally highlighted that GBP “is unlikely to interrupt clearly above 1.3700.” The next value actions didn’t prove as anticipated. GBP edged to a excessive of 1.3713 earlier than easing to shut at 1.3678, up by 0.22%. There was no additional enhance in upward momentum, and with situations nonetheless overbought, we count on GBP to consolidate immediately, most definitely between 1.3620 and 1.3715. “
“1-3 WEEKS VIEW: Our replace from yesterday (26 Jan, spot at 1.3660) nonetheless stands. As highlighted, the current value motion “continues to counsel a better GBP, and the degrees to look at are 1.3725 and 1.3790.” We added, “given the deeply overbought situations, it stays to be seen if 1.3790 is inside attain.” General, solely a breach of 1.3560 (‘robust help’ degree was at 1.3540 yesterday) would point out that the advance from the center of final week (see annotations within the chart beneath) has come to an finish.”
(This text was created with the assistance of an Synthetic Intelligence software and reviewed by an editor.)
