GBP/USD still sees a move to 1.2450 – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, Cable still faces chances of a visit to the mid-1.2400s in the near term.

Key Quotes

24-hour view: “Expectation for GBP to “edge above 1.2385” did not materialize as it traded in a relatively quiet manner between 1.2313 and 1.2371. Momentum indicators are mostly ‘neutral’ now and GBP could continue to trade sideways for today, likely between 1.2290 and 1.2360”.

Next 1-3 weeks: “As highlighted, the recovery in GBP that started late last week could extend to 1.2450 but ‘confirmation’ is only upon a NY close above 1.2380. Shorter-term momentum indicators appear to be stalling and the prospect for further GBP strength has diminished somewhat. However, only a break of 1.2235 (strong support previously at 1.2200) would indicate that the recovery phase hasrun its course. Meanwhile, GBP could consolidate at these higher levels for a couple of days before ‘deciding’ whether to extend its recovery”.

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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