The British Pound (GBP) is expected to trade within the 1.3460 – 1.3530 range. In the longer term, current price movements may fall within a broader range of 1.3430 – 1.3595, according to FX analysts at Hubtrading.
Current price movements are likely part of a broad range
24-HOUR VIEW:
“In the NY session last Friday, GBP climbed to a high of 1.3554 before retreating sharply to close at 1.3507 (+0.52%). The sharp pullback has eased some of the upward momentum, making further gains unlikely. For today, we expect GBP to consolidate within a range, most likely between 1.3460 and 1.3530.”
1-3 WEEKS VIEW:
“GBP fell sharply last Tuesday. In our latest update on Wednesday (03 Sep, spot at 1.3390), we noted that ‘while the steep decline seemed excessive, there was scope for GBP to weaken further to 1.3305, with the possibility of testing the key support near 1.3270.’ We also highlighted that ‘to maintain downward momentum, GBP had to stay below 1.3490.’ These assessments proved incorrect, as after dipping to a low of 1.3334, GBP rebounded strongly and surged to 1.3554 last Friday. However, given the prior steep decline, this sharp rebound has not resulted in a meaningful build-up of upward momentum. Overall, we consider the current price action to be part of a broad range, likely between 1.3430 and 1.3595.”
