According to UOB Group currency strategists Lee Sue Ann and Quek Ser Leang, GBP/USD could extend gains once it clears the 1.2600 barrier.
Key comments
24 hour view: “Yesterday, we expected GBP/USD to ‘trade within a range of 1.2480/1.2580’. Subsequently, GBP/USD moved within a wider range than expected (1.2482/1.2590). The underlying tone has improved and GBP/USD could break above major resistance at 1.2600 Next resistance at 1.2640 is unlikely to be threatened To the downside, a break of 1.2530 (minor support is at 1.2560) would indicate current mild upside pressure has diminished”.
Next 1-3 weeks: “Yesterday (May 25, GBP/USD at 1.2540) we highlighted that GBP/USD is likely to consolidate and move between 1.2430 and 1.2600. We added that ‘Looking ahead, further GBP strength is not ruled out’ /USD, but needs to close above 1.2600 before sustained advance is likely.” GBP/USD subsequently rose as high as 1.2590 before closing at 1.2584 (+0.38%). Short-term bullish momentum has improved a little but, as indicated, GBP/USD has to close above 1.2600 before a sustained advance is likely. Next resistance above 1.2600 is at 1.2640.”
Source: Fx Street
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