GBP/USD: 1.2850 is likely out of reach for now – UOB Group

The Pound Sterling (GBP) is expected to continue to rise, potentially breaking above 1.2805; major resistance at 1.2850 is likely out of reach for now. In the longer run, there has been a strong surge in momentum; GBP may rise to 1.2850, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

GBP may rise to 1.2850

24-HOUR VIEW: “When GBP was at 1.2695 yesterday, we held view that it ‘could test the 1.2725 level before a pullback is likely.’ We were also of the view that ‘the major resistance at 1.2750 is unlikely to come under threat.’ However, GBP strengthened more than expected, breaking above 1.2750 (high has been 1.2771). We continue to expect GBP to rise, potentially breaking above 1.2805. The major resistance at 1.2850 is likely out of reach for now. Support levels are at 1.2740 and 1.2720.”

1-3 WEEKS VIEW: “Three days ago (03 Dec), when GBP was at 1.2660, we revised our outlook from positive to neutral. We indicated that GBP ‘is likely to trade in a range, probably between 1.2580 and 1.2750.’ After a couple of days of range trading, GBP soared yesterday, breaking clearly above 1.2750. Not surprisingly, there has been a surge in momentum. From here, provided that GBP does not breach the ‘strong support’ level, currently at 1.2685, it may rise to 1.2850.”