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