GBP/USD catching a bounce; expect consolidation

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Guatemala) - GBP/USD is trading at 1.7061, down -0.23% on the day, having posted a daily high at 1.7119 and low at 1.7036.



GBP/USD is catching a bounce after a deep continuation of a move to the downside. The Market Strategy Team at UOB Group notd that although GBP spiked to a high of 1.7192 earlier this week they continue to expect a corrective pullback targeting a move towards 1.6995/1.7010. "Patchy short-term momentum may lead to a coupe of days of sideway trading but GBP should eventually move towards 1.6995/1.7015. Strong resistant is at 1.7155/60 but a only break above 1.7200 would indicate that our bearish view is wrong”. From a longer-term, they will consider any down-move as corrective in nature and expect GBP to resume its recent uptrend at a later stage.



GBP/USD Levels



With spot trading at 1.7062, we can see next resistance ahead at 1.7075 (Daily 20 SMA), 1.7083 (Weekly Low) and 1.7085 (Yesterday's Low). Support below can be found at 1.7036 (Daily Low), 1.7016 (Daily Classic S3) and 1.6990 (Weekly Classic S3).



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