GBP/USD may potentially rise to 1.3750 – UOB Group
|Momentum is increasing, and Pound Sterling (GBP) could strengthen toward 1.3720 against US Dollar (USD). In the longer run, outlook for GBP is positive; it may rise to 1.3720, potentially 1.3750, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Outlook for GBP is positive
24-HOUR VIEW: "We did not expect GBP to rise to 1.3671 (as we were expecting range-trading). GBP closed at 1.3655 (+0.34%) before rising further today. Momentum is increasing and GBP could strengthen toward 1.3720. At this time, it is unclear whether the current momentum can carry GBP to 1.3750. On the downside, support levels are at 1.3660 and 1.3640."
1-3 WEEKS VIEW: "In our latest narrative from two days ago (24 Jun, spot at 1.3545), we highlighted that the recent 'downward momentum buildup has faded.' We also highlighted that 'the outlook appears mixed, and GBP could trade in a range of 1.3420/1.3655 for now.' We reiterated our view yesterday, but we pointed out that 'should GBP break and hold above 1.3655, it would increase the potential for GBP moving above 1.3700.' GBP subsequently rose and closed at 1.3665 (+0.34%). Today, we are revising our GBP outlook to positive, and now expect a move to 1.3720, potentially 1.3750. To sustain the buildup in momentum, GBP must hold above the ‘strong support’ level, currently at 1.3595."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.