The Pound Sterling (GBP) may retest the 1.3050 degree earlier than a extra sustained rebound is probably going. Within the longer run, GBP is anticipated to weaken additional; the subsequent degree to observe is 1.3000, UOB Group FX analysts Quek Ser Leang and Peter Chia observe.
Could goal 1.3000 beneath 1.3050
24-HOUR VIEW: “We indicated yesterday that GBP ‘is more likely to proceed to weaken, doubtlessly to 1.3035.’ Nonetheless, GBP fell lower than anticipated to 1.3049, rebounding to shut largely unchanged (1.3080, +0.05%). Whereas downward momentum is starting to sluggish, GBP may retest the 1.3050 degree earlier than a extra sustained rebound is probably going. The key assist at 1.3000 is unlikely to return underneath risk. Resistance is at 1.3105, adopted by 1.3120.”
1-3 WEEKS VIEW: “We highlighted two days in the past (09 Sep, spot at 1.3130) that GBP ‘may drift decrease, probably reaching 1.3050.’ Yesterday (10 Sep, spot at 1.3070), we highlighted that GBP ‘is anticipated to weaken additional and the subsequent degree to observe is 1.3000.’ In NY commerce, GBP fell to a low of 1.3049. From right here, so long as 1.3140 (no change in ‘sturdy resistance’ degree from yesterday) isn’t breached, we are going to proceed to carry the identical view.”