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GBP / USD: Additional gains expected above 1.3200

A sustained upward movement in GBP / USD is likely if it succeeds above the 1.3200 level.have suggested the currency strategists at UOB Group.

Key Comments:

24 hour view: “Our expectation that GBP / USD would trade within the 1.2900 / 1.3080 range was incorrect as it spiked to a high of 1.3155 (the low has been 1.2930). Bullish momentum is strong and GBP / USD could continue to advance despite overbought conditions suggesting that main resistance at 1.3200 could be out of reach (there is minor resistance at 1.3175). Support is at 1.3080 followed by 1.3040 “.

Next 1-3 weeks: “On Wednesday (Nov 4, GBP / USD at 1.3030) we observed that the ‘short term outlook is clouded’ and GBP / USD ‘could trade between the two main levels of 1.2845 and 1.3200’. The sudden strong take-off in the pair, which sent it to a high of 1.3155 yesterday (Nov 5) and the subsequent strong daily close at 1.3153 (+ 1.23%) was unexpected. While the bullish momentum has improved, the British pound has to move and hold above the main resistance at 1.3200 before a more sustained advance can be expected. Right now, the outlook for this scenario is not high, but it would rise further as long as GBP / USD does not move below 1.3000 (‘strong support’ level) in these few days. Looking ahead, the next resistance above 1.3200 is at 1.3255 followed by 1.3300 ”.

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Credits: Forex Street

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