In the opinion of Lee Sue Ann, UOB Group Economist, and Quek Ser Leang, Market Strategist, additional gains could lift GBP/USD to the 1.2900 zone In the next weeks.
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24 hour view: We expected GBP/USD to “go higher” last Friday. However, we indicate that “in view of severely overbought conditions, it is unlikely to challenge 1.2850”. GBP/USD rose as expected although it was close to breaking above 1.2850 (the high was 1.2849). As long as conditions remain overbought, GBP/USD could break above 1.2850 today, but it is unlikely to be able to hold above this level. The next major resistance at 1.2900 is not expected. Support is at 1.2800, followed by 1.2770.
Next 1-3 weeks: We have maintained a positive view on GBP/USD for more than a week. In our most recent analysis last Friday (June 16, GBP/USD at 1.2780), we indicated that “GBP/USD strength is intact and the next level to look for is 1.2900”. To the downside, a break of 1.2700 (the “strong support” level was at 1.2600 last Friday) indicates that the GBP/USD strength is over.
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.
