GBP/USD now focuses on 1.3480 – UOB

Pablo Piovano FXStreet

Cable’s upside momentum has improved and could attempt a move to 1.3480 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that we ‘see chance for GBP to edge upwards to 1.3400’. We added, ‘the prospect for a sustained advance above this level is not high’. Our expectation did not materialize as GBP only touched a high of 1.3394. Upward momentum has improved and for today, a break of 1.3400 would not be surprising and could lead to further gains towards 1.3440 (next resistance is at 1.3481). Support is at 1.3350 followed by 1.3315.”

Next 1-3 weeks: “We have held a positive view in GBP since last Tuesday (17 Nov, spot at 1.3210). After GBP retreated from a high of 1.3396, we highlighted on Tuesday (24 Nov, spot at 1.3325) that ‘there is chance, albeit not a high one, for GBP to push above 1.3400’. GBP rose to 1.3394 yesterday before closing at 1.3386 (+0.19%). Momentum is beginning to improve and a break of 1.3400 would shift the focus to the yearto-date high at 1.3481 (there is a minor resistance at 1.3440). All in, the outlook for GBP is deemed as positive as long as it does not move below 1.3280 (‘strong support’ level previously at 1.3250).”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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