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Additional gains likely above 1.4235 – UOB

In the opinion of the currency strategists of UOB Group, the libra has prospects of continuing to rise once it exceeds the 1.4235 In the next weeks.

24 hour perspective: “Yesterday we highlighted that a breaking off of the strong support in 1.4100, but it was unlikely that the libra threatens the next support in 1.4055. Although our opinion was not wrong, as the pound fell to 1.4092, the steep rise later it was a surprise (the maximum has been 1.4220). The rapid rise seems to prevail, but there is room for the pound to test 1.4235. That said, this level is unlikely to break (next resistance is at 1.4265). Support is on 1.4165 followed by 1.4140“.

Next 1-3 weeks: “Yesterday we indicated that the Bearish momentum was starting to improve and the pound could drop as low as 1.4055. We add that the possibility of a sustained decline below 1.4055 was not high, but would rise further unless the British pound moves above the level of strong resistance on 1.4180. Our opinion was shown to be wrong, as the pound exceeded the 1.4180 and reached a maximum of 1.4220. Strong short-term momentum suggests that the pound could test the 1.4235, but the pound has to close above this important resistance before a sustained advance can be expected. To maintain the rapid build-up of momentum, any pullback in the British pound should stay above 1.4110 (“strong support” level). Looking ahead, the next resistance levels above 1.4235 they are at 1.4265 and 1.4290 “.

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