There is a possibility for Pound Sterling (GBP) to retest the 1.3120 level; the significant assistance at 1.3100 is not likely to come into view. GBP is still unfavorable, however it stays to be seen if 1.3100 is within reach throughout this stage of weak point, UOB Group’s FX experts Quek Ser Leang and Peter Chia note.
GBP is still trading unfavorable
24-HOUR VIEW: “GBP dropped greatly for the 2nd straight day on Wednesday before rebounding greatly. The other day, we specified that “the rebound from oversold conditions recommends that GBP is not likely to deteriorate much even more.” We were of the view that GBP “is most likely to combine in between 1.3140 and 1.3245.” We were inaccurate, as GBP fell even more to a low of 1.3117. Although conditions are still oversold, there is a possibility for GBP to retest the 1.3120 level before a healing can be anticipated. The significant assistance at 1.3100 is not likely to come into view. On the benefit, if GBP breaks above 1.3200 (small resistance is at 1.3175), it would imply that it is not decreasing even more.”
1-3 WEEKS VIEW: “We have actually held an unfavorable GBP view given that early recently. The Other Day (30 Oct, area at 1.3195), we highlighted that GBP ‘is still unfavorable’. Nevertheless, we mentioned that ‘it stays to be seen if the next technical target at 1.3100 is within reach throughout this stage of weak point’. Although GBP consequently dropped even more to 1.3117, short-term conditions are deeply oversold, and it stays to be seen if 1.3100 is within reach. We will preserve our unfavorable outlook as long as GBP holds listed below 1.3245 (‘ strong resistance’ level was at 1.3285 the other day).”
Source: FXstreet.
