GBP/USD seen advancing to the 1.3760 region – UOB


In opinion of FX Strategists at UOB Group, Cable could now head towards the 1.3760 zone in the next weeks.

Key Quotes

24-hour view: “While we noted yesterday that ‘downward momentum is waning and further sustained weakness is unlikely’, we did not anticipate the sudden surge in GBP that sent it soaring by +1.15% (1.3670). Upward momentum remains strong and further GBP strength is likely even though overbought conditions suggest that it may not be able to maintain a foothold above last week’s peak at 1.3703 (next resistance is at 1.3730). On the downside, a break of 1.3600 would indicate the current upward pressure has eased (minor support is at 1.3630).”

Next 1-3 weeks: “Two days ago (11 Jan, spot at 1.3525), we highlighted that ‘a daily closing below 1.3460 could lead to GBP moving lower to 1.3400’. GBP subsequently dipped to 1.3451 before staging a surprisingly sharp rise yesterday to a high of 1.3670. The prospect for GBP weakness has dissipated and while the risk has shifted to the upside, any advance is expected to face solid resistance at 1.3760. Overall, GBP is expected to trade with an upward bias with 1.3550 acting as ‘strong support’ level.”

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures