There is a chance of a sharp rise in the British pound to test the 1.3560 level before stabilizing. The price is not expected to appear at 1.3590 today. In the longer term, the British pound may rise to 1.3590. Kwik Ser Liang and Peter Chia, FX market analysts at UOB Group, point out that the chances of the rally continuing above this level are not high.
The British pound has a chance to rise towards 1.3590
24 Hour View: “Our view of GBP trading sideways between 1.3430 and 1.3490 yesterday was incorrect. GBP traded in a relatively choppy manner, falling to 1.3415, rising to 1.3548 before closing strongly at 1.3541 (+0.58%). Given that the sharp rise came from a lower level, the increase in upward momentum is not significant. With Therefore, there is an opportunity for the British pound to test the 1.3560 level before stabilizing, and based on the current momentum, we do not expect the support levels at 1.3505 and 1.3485 to emerge today.
1-3 week view: “We noted yesterday (05 Jan, spot at 1.3450) that “momentum indicators are mostly flat”, and we were of the view that GBP “is likely to trade in a range between 1.3400 and 1.3535”. However, GBP rallied and broke above 1.3535 (1.3548 high). Although upside momentum did not increase significantly, However, the British pound may rise to 1.3590 currently, the chances of a continuation of the rise above this level are not high and on the downside, a break below 1.3455 would indicate that the British pound is likely to trade in a range rather than rising towards 1.3590.
