GBP/USD now focuses on 1.4300 and beyond – UOB
|The recent strong performance in the British pound could lift Cable to the 1.4300 level and above, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “We highlighted yesterday that ‘overbought advance in GBP could test 1.4100 first before a pullback can be expected’. We added, GBP ‘is not expected to challenge the next resistance at 1.4150’. GBP subsequently rose to 1.4117 before closing at 1.4112. GBP soared during early Asian hours and has just breached 1.4150. While further advance is not ruled out, the rapid rise appears to be overdone and the next major resistance at 1.4300 is unlikely to come into the picture. Support is at 1.4120 followed by 1.4070.”
Next 1-3 weeks: “We have held a positive view in GBP for more than 2 weeks now. In our latest update from Monday (22 Feb, spot at 1.4030), we indicated that ‘upward momentum remains strong and GBP could advance further to 1.4100’. We added, ‘a clear break of 1.4100 would shift the focus to 1.4150’. We did not anticipate the sudden surge in GBP as it just breached 1.4150 during Asian hours and the focus has shifted to 1.4300 followed by the 2018 high of 1.4377. On the downside, a break of 1.4020 (‘strong support’ level was at 1.3940 yesterday) would indicate that the positive phase in GBP has run its course.”
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.