In opinion of FX Strategists at UOB Group, Cable could now advance to the 1.4100 level in the next weeks.
24-hour view: “We highlighted last Friday that GBP ‘could edge above 1.4000 first before a pullback can be expected’. We added, ‘the next resistance at 1.4050 is unlikely to come into the picture’. Our view was not wrong as GBP rose to 1.4036. GBP is currently approaching 1.4050 and in view of the solid momentum, a break of this level would not be surprising. That said, the next resistance at 1.4100 is likely out of reach for now. Support is at 1.4005 followed by 1.3975.”
Next 1-3 weeks: “Last Friday (19 Feb, spot at 1.3960), we highlighted that ‘strong boost in momentum suggests GBP could crack 1.4000 and head towards 1.4050’. GBP subsequently took out 1.4000 with ease as it soared to a high of 1.4036. Upward momentum remains strong and GBP could advance further to 1.4100. The next resistance is at 1.4150. On the downside, the ‘strong support’ level has moved higher to 1.3920 from Friday’s level of 1.3870. A break of the ‘strong support would indicate that the positive phase in GBP that started about 2 weeks ago has run its course.”
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