Introduction:
The GBP/USD currency pair has been showing a mixed outlook in recent weeks. According to market strategists Quek Ser Leang and Peter Chia, the pair is expected to trade within a specific range over the coming weeks. In this article, we will explore their predictions in detail and provide insights into the potential factors that could influence GBP/USD’s performance.
Expected Trading Range for GBP/USD:
Market strategists Quek Ser Leang and Peter Chia suggest that GBP/USD is expected to trade within a range of 1.1950 and 1.2240 in the coming weeks. This means that the pair is unlikely to break out of this range unless there is a significant shift in market sentiment.
24-Hour View of GBP/USD:
According to the market strategists, GBP/USD surged to 1.2112 last Friday, which was not anticipated. They were expecting the currency pair to trade within a range. They suggest that the rapid rise has scope to test 1.2145, but major resistance at 1.2240 is not expected to come into view. On the downside, support is expected to be at 1.2040, followed by 1.2000.
Factors That Could Influence GBP/USD’s Performance:
There are several factors that could potentially influence GBP/USD’s performance in the coming weeks. One of the key factors is the ongoing Brexit negotiations. The UK and the EU are still in talks to reach a trade deal before the transition period ends on December 31, 2020. Any progress or lack thereof in these negotiations could impact GBP/USD’s performance.
Another factor to watch out for is the US presidential election. The election is scheduled to take place on November 3, 2020, and the outcome could have a significant impact on the USD’s performance. The market is likely to be volatile in the run-up to the election, and GBP/USD could be affected.
Other factors that could influence GBP/USD’s performance include economic data releases, central bank announcements, and global events such as the ongoing COVID-19 pandemic.
Conclusion:
GBP/USD is expected to trade within a range of 1.1950 and 1.2240 in the coming weeks, according to market strategists Quek Ser Leang and Peter Chia. The rapid rise to 1.2112 last Friday has scope to test 1.2145, but major resistance at 1.2240 is not expected to come into view. Support is expected to be at 1.2040, followed by 1.2000. Several factors, such as Brexit negotiations and the US presidential election, could influence GBP/USD’s performance in the coming weeks. It is important for traders to keep an eye on these developments to make informed trading decisions.
