News | Forex Optimum



GBP/USD stays bid but a test of 1.3012 looks unlikely – UOB

FX Strategists at UOB Group note that although the bid tone in GBP/USD is expected to persist in the near-term, a test of the 1.3010-region appears unlikely for the time being.

  • "24-hour view: While we expected GBP to strengthen yesterday, we held the view “1.2975 is unlikely to come in to the picture”. The subsequent GBP strength exceeded our expectation as GBP popped briefly to a high 1.2985. The combination of lackluster momentum and overbought conditions suggest 1.2985 could be a short-term top. That said, a sustained pullback is not expected. GBP is more likely to consolidate and trade sideways at these higher levels, expected to be within a 1.2915/1.2975 range.
  • Next 1-3 weeks: We indicated yesterday (18 Nov, spot at 1.2920) that GBP “could edge higher in the coming days and test the strong 1.2975 resistance”. However, GBP exceeded the 1.2975 level within hours as it popped to 1.2985 before easing off. While upward momentum has picked up, the prospect for GBP to move above last month’s peak at 1.3012 is still not that high. That said, GBP is expected to stay underpinned as long as it stays above 1.2875 in the coming days."

You may also be interested:

16:01 07.07.2020
Shanghai Comp to stay bullish with next major resistance at 3587 - Credit Suisse
FXStreet notes that Shanghai Composite finally paused on Tuesday as the market closed only marginally higher. Nevertheless, economists at Credit Suisse maintain a bullish outlook with next resistance at 3400/07 before the important medium-term resistance at 3587.“The market holds a long list of supportive technical factors which keeps us biased higher, including very strong momentum, with the daily RSI at the highest level since 2014, suggesting a real possibility that we are moving into a
15:30 07.07.2020
AUD/USD: RBA cautious tone to cap aussie around 0.70 - Westpac
FXStreet notes that AUD/USD stays compressed around 0.6941, down 0.46% on a day, after the Reserve Bank of Australia (RBA) held benchmark interest rate unchanged near 0.25% while citing economies fears in the rate statement. Economists at Westpac expect the forehanded tone to cap any potential AUD/USD move above 0.70.“In the July statement, the RBA did note that ‘conditions have … stabilised recently and the downturn has been less severe than earlier expected’; ‘the decline in hours worked was
15:09 07.07.2020
European session review: EUR mixed following grim GDP forecasts from European Commission and weaker-than-expected May industrial output data from Germany
TimeCountryEventPeriodPrevious valueForecastActual06:00GermanyIndustrial Production s.a. (MoM)May-17.5%10%7.8%06:45FranceTrade Balance, blnMay-5.1 -7.107:00Switzerland Foreign Currency ReservesJune816.5 850.107:30United KingdomHalifax house price indexJune-0.2%-0.9%-0.1%07:30United KingdomHalifax house price index 3m Y/YJune2.6% 2.5%EUR traded mixed against its major counterparts in the European session on Tuesday after the European Commission slashed its economic forecasts and
Bonuses VIP