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GBP/USD: Bullish Momentum Accelerates – UOB

Economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group, suggest that the GBP/USD will continue to rise to the 1.2450 area in the short term.

24 hour perspective: “We expected the pound to weaken yesterday but thought the main support at 1.2250 was unlikely to be threatened. The currency fell briefly as low as 1.2275 New York time before bouncing sharply to close at 1.2375 (+0.47% ). The Advance has room to extend but a sustained rally above 1.2450 seems unlikely. Support is at 1.2360, followed by 1.2330″.

Next 1-3 weeks: “Our most recent analysis was from Tuesday (Jan 31, pair at 1.2350) where we indicated that the pound had probably entered a consolidation phase and was likely to trade between 1.2250 and 1.2430 at the moment. The currency reached a high of 1.2395 in New York time and the bullish momentum is starting to set in. However, the pound should break above 1.2450 and hold before a sustained advance is likely. The next resistance level above 1.2450 is found at 1.2510. The odds of it clearly breaking above 1.2450 would increase as long as it holds above the strong support level, currently at 1.2300.”

Source: Fx Street

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