GBP/USD: Upside force mitigated beneath 1.2350 – UOB

In the idea of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Community, the upward bias would maybe well perhaps lose traction if GBP/USD breaks beneath 1.2350.

Key Quotes

24-hour gape: We indicated the day gone by that GBP “appears to be like to have entered a consolidation section”, and we held the gape that it “is at possibility of interchange in a unfold of 1.2380/1.2480”. GBP then dipped to 1.2377, rebounded to 1.2455, and then eased off to shut largely unchanged at 1.2415 (+0.01%). The value movements soundless seem like consolidative, and we proceed to demand GBP to interchange in a unfold, doubtlessly between 1.2375 and 1.2460. 

Next 1-3 weeks: Our most popular myth used to be from two days previously (15 Nov, dilemma at 1.2490), whereby GBP “is at possibility of proceed to attain, nonetheless it has to interrupt clearly above 1.2580 prior to a extra sustained upward push is seemingly.” Since then, GBP has no longer been in a position to function any headways on the upside because it eased off over the past couple of days. While upward momentum has waned considerably, handiest a breach of 1.2350 (no trade in ‘sturdy toughen’ level from the day gone by) would display cloak that GBP isn’t any longer advancing extra. 

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