GBP/USD: Recovery still has legs to go – UOB
|Cable’s upside momentum could extend further in the near term, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “Our expectation for GBP to ‘stage another push higher’ did not materialize as it traded in a relatively narrow range (between 1.2318 and 1.2469) before ending the day slightly lower at 1.2419 (-0.19%). Upward momentum is beginning to show signs of tiring and this coupled with the still overbought conditions suggest limited upside risk for today. From here, GBP could drift lower to 1.2300, possibly even testing the next support at 1.2240. Resistance is at 1.2430 followed by last Friday’s top near 1.2485. The latter level is acting as a strong resistance now.”
Next 1-3 weeks: “There is not much to add to the update from last Friday (27 Mar, spot at 1.2200). As highlighted, the current recovery in GBP has scope to extend higher but the prospect for a move beyond 1.2550 is not high. On the downside, only a break of 1.2000 (‘strong support’ level previously at 1.1880) would indicate that the current upward pressure has eased.”
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.