In view of the research team at UOB Group, GBP/USD could resume its upside in the next 1-3 weeks.
Key Quotes
“The break below the 1.4350 stop-loss resulted in a sharp drop to a low of 1.4191”.
“The up-move that started from the low of 1.4053 last week has topped out at 1.4514, much sooner than expected and short of our 1.4570 target”.
“Despite the sharp drop, we are not convinced that the current weakness is a resumption of the bearish trend in GBP”.
“The current movement is viewed as part of a broad sideway consolidation range and further choppy can be expected in the next couple of weeks, likely holding between 1.4050 and 1.4400 (bias is for a probe lower towards 1.4050)”.
(Market News Provided by FXstreet)