GBP/USD: Likely to continue to rise – UOB Group
|Pound Sterling (GBP) is likely to continue to rise; 1.2500 is expected to provide strong resistance. In the longer run, for the time being, GBP is likely to trade in a 1.2310/1.2550 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
1.2500 is expected to provide strong resistance
24-HOUR VIEW: "We detected 'a tentative buildup in downward momentum' yesterday. We highlighted that this 'could lead to GBP edging lower today, but the major support at 1.2310 is unlikely to come into view.' GBP subsequently dropped to 1.2333 before staging a surprisingly strong advance, closing on a firm note at 1.2446 (+0.66%). While GBP is likely to continue to rise, any further advance is expected to face strong resistance at 1.2500. The major resistance at 1.2550 is unlikely to come under threat. To sustain the momentum, GBP must remain above 1.2400, with minor support at 1.2425."
1-3 WEEKS VIEW: "Our latest narrative was from last Friday (09 Feb, spot at 1.2440), wherein 'for the time being, GBP is likely to trade in a 1.2310/1.2550 range.' There is no change in our narrative for now."
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