The pound could see its upside revitalized if it surpasses 1.3930 in the near term, currency strategists from UOB Group.
24 hour perspective: “Yesterday, we highlighted that despite the decline, the downside momentum had not improved much. However, we felt there was room for the British pound to decline to 1.3760. Our expectations did not materialize as the GBP rebounded from 1.3803 to a maximum of 1.3925. From here, the Pound could retest the 1.3925 / 30 level. A breakout of this strong resistance is not ruled out, but 1.3970 is not expected to enter the scene. The support is at 1.3845 followed by 1.3810 “.
Next 1-3 weeks: “We have had a negative view on the pound since the end of last week. Yesterday (Mar 9, pair at 1.3815), we indicated that while momentum still appeared to be lackluster, a breakout of 1.3760 was not ruled out. Subsequently, the British pound fell to 1.3803 before rebounding strongly to a high of 1.3925. The Bearish momentum has subsided and a breakout of 1.3930 (no change in ‘strong resistance’ level) would indicate that the current slight downward pressure on GBP has dissipated“.
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