Categories: Forex News
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2023-08-23 11:09 AM

Rand Watch: GBP/USD Consolidation Predicted by UOB Experts

  • The GBP/USD currency pair is likely to experience further consolidation in the near term, according to UOB Group's specialists.
  • Despite the British Pound briefly rising above 1.2790, it subsequently experienced a sharp decline, indicating an increased downward momentum for the short-term.
  • Over the next 1-3 weeks, the GBP's trading movements suggest it's in a consolidation phase, and it's expected to fluctuate within the range of 1.2640 and 1.2830.
By Nonhlanhla

Recent fluctuations in the GBP/USD currency pair have been of significant interest to global traders, and this includes South Africa’s financial experts who routinely monitor these major global currency dynamics for their potential influence on the Rand (ZAR). Leading voices from UOB Group, including Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, have offered some valuable insights into what we can expect from the GBP/USD in the foreseeable future.

In their short-term forecast, UOB had pointed towards an emergent upward momentum in the GBP/USD, suggesting that it might surpass the 1.2790 level. This prediction came to pass as the pair marginally exceeded this level to touch 1.2800. However, the currency’s subsequent swift descent to 1.2720 was unexpected. At the moment, while there has been a slight reinforcement in the downward momentum of GBP, it’s not anticipated to take a significant dip below the 1.2690 mark. It’s important to note that if the GBP manages to breach the 1.2785 mark, this would be an indication of a waning downward inclination, especially with a minor resistance level hovering at 1.2755.

Reflecting on the data from 21 August, when the spot rate was marked at 1.2740, the team at UOB highlighted that the recent movements of GBP seem to be indicative of a consolidation phase. They anticipate the currency to stay on this course for the subsequent few weeks, a perspective that is invaluable for strategists and financial planners.

For those in South Africa aiming to decipher the international factors that might affect the Rand, understanding these nuances in the GBP’s movements is vital. Current expectations suggest that the GBP will hover between the 1.2640 and 1.2830 range. In the intricate web of global finance, the health of South Africa’s economy can often be influenced by such major currency trends. By keeping abreast of expert analyses from revered institutions like UOB, local traders and stakeholders can position themselves more effectively in the market.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za

Tags: GBP/USD