+447418397959 | premiuminvestmentservices@gmail.com

GBP/USD: A breach of 1.2850 should expose 1.2800 – UOB

If Cable clears the 1.2850 level, the downside could extend to the 1.28 region, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view from last Friday that ‘the risk for GBP remains on the downside’ was correct. However, the anticipated ‘solid support’ at 1.2900 did not materialize as GBP cracked this level and dropped to 1.2882. The subsequent weak daily closing in NY of 1.2883 suggests further weakness GBP from here. That said, a sustained break of the major 1.2850 support appears unlikely (minor support at 1.2870). On the upside, only a move above 1.2940 would indicate that the current weakness has stabilized.”

Next 1-3 weeks: “We highlighted the ‘increased risk of a break of 1.2900’ last Friday (07 Feb, spot at 1.2930) and indicated ‘the next support level of note below 1.2900 is at 1.2850’. GBP subsequently dropped to 1.2882 before ending the day on a weak note at 1.2883 (-0.34%). The near-term risk remains on the downside and a breach of 1.2850 would expose the next support at 1.2800. On the upside, the ‘strong resistance’ level has moved lower to 1.2980 from 1.3020. Only a breach of this ‘strong resistance’ would indicate the current weakness has stabilized.”

FXStreet Indonesian Site – new domain!
Access it at www.fxstreet-id.com

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Original Article

About the Author

Leave a Reply