GBP/USD is expected to continue rising on the near term horizonaccording to economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group.
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24 hour view: GBP/USD’s sharp rise to a high of 1.2562 yesterday was a surprise (we expected it to be range bound). Although the rally seems to have been overdone, it could continue even though resistance at 1.2680 is highly unlikely to appear today (there is another resistance at 1.2600). To maintain momentum GBP/USD needs to stay above 1.2495 (minor support is at 1.2520).
Next 1-3 weeks: Yesterday (June 8, GBP/USD at 1.2445), we were of the opinion that GBP/USD “will probably consolidate between 1.2350 and 1.2550 for the time being”. We do not anticipate the strong rise of GBP/USD that took it above 1.2550 (the high was 1.2562). Although GBP/USD is likely to continue higher, it remains to be seen if it has enough momentum to revisit last month’s high near 1.2680. To the downside, a break of 1.2450 (“strong support” level) would indicate that 1.2680 is nowhere in sight.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
