GBP/USD: Outlook for GBP remains positive – UOB Group
Strong momentum appears to be slowing; Pound Sterling (GBP) is likely to trade in a 1.2850/1.2925 range vs US Dollar (USD). In the longer run, outlook for GBP remains positive; the next technical target is at 1.2975, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
24-HOUR VIEW: “Following the strong rise in GBP two days ago, we indicated yesterday that ‘although deeply overbought, GBP appears to have enough momentum to rise further.’ We pointed out, ‘The levels to monitor are 1.2930 and 1.2975.’ However, GBP rose less than expected to 1.2924. It ended the day largely flat at 1.2882 (-0.09%). The strong upward momentum over the past few days appears to be slowing. Today, we expect GBP to trade in a 1.2850/1.2925 range.” Read more…
GBP/USD Forecast: Pound Sterling remains overbought as focus shifts to key US data
After moving sideways on Thursday and the Asian session on Friday, GBP/USD regained its traction and touched a fresh multi-month high above 1.2900 in the European morning. The February employment report from the US could drive the pair’s action heading into the weekend.
The risk-averse market atmosphere helped the US Dollar (USD) limit its losses and made it difficult for GBP/USD to extend its uptrend on Thursday. Early Friday, US stock index futures trade in positive territory and the USD Index, which tracks the USD’s valuation against a basket of six major currencies, stays in the red below 104.00, allowing GBP/USD to stretch higher. Read more…
