VOT Research Desk
According to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, GBP/USD is currently subject to some short-term consolidation between 1.1850 and 1.2080.
Daily perspective the ‘oversold weakening in GBP could continue to 1.1915 before stabilization is expected,’ as we noted yesterday, is one of the points we made.
The GBP soared to 1.2062 before falling back down and ending the day little changed at 1.1953 (-0.04%), contrary to what we had anticipated.
Although tentatively, there seems to be a downward momentum developing. GBP is anticipated to trade with a bearish bias today as long as it stays below 1.2020 (little barrier is at 1.1990).
Any decline, meanwhile, is unlikely to threaten the key support at 1.1850. (there is another support at 1.1915). coming 1-3 weeks as of yesterday (29 November, spot at 1.1965), our update is still real.
The recent increase in rising momentum has diminished, as was emphasised. The GBP appears to have entered a phase of consolidation and will probably trade between 1.1850 and 1.2080.
A clear break of 1.1850 in the near future would indicate a further decline in the GBP.
