S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
UOB’s Quek Ser Leang and Lee Sue Ann note GBP/USD broke below its anticipated intraday range, dropping to 1.3507 as downside momentum starts to build. Intraday, they expect a bearish bias with potential tests of 1.3500 and the major 1.3480 support, provided prices stay below 1.3545. Over one to three weeks, they keep a downside risk focus, with 1.3480 as the key level unless 1.3570 resistance is breached.
Pound under pressure toward support
“24-HOUR VIEW: GBP traded between 1.3531 and 1.3565 two days ago and closed little changed at 1.3549 (+0.06%). Yesterday, we stated that “the price movements appear to be part of a range-trading phase,” and we were of the view that GBP “could trade in a higher range of 1.3535/1.3570 today.” However, instead of trading in a range, GBP declined to a low of 1.3507. Downward momentum is building tentatively, and today we expect GBP to trade with a downside bias, potentially testing the major support at 1.3480 (there is another support level at 1.3500). To sustain the momentum build-up, GBP must hold below 1.3545, with minor resistance at 1.3530.”
“1-3 WEEKS VIEW: Our update from Monday (31 Aug, spot at 1.3540) still stands. As highlighted, “the risk for GBP remains on the downside, and the level to watch is 1.3480.” On the upside, a breach of 1.3570 (‘strong resistance’ level previously at 1.3600) would indicate that the downward pressure from last Friday has eased. “
