In the opinion of Quek Ser Leang, UOB Group Market Strategist, and Peter Chia, Senior Currency Strategist, GBP/USD strength may be running out of steam.
24 hour view: “We highlighted last Friday that ‘although bullish momentum has abated, there is room for GBP/USD to test 1.2450 first before the risk of a more sustained retracement increases.’ However, GBP/USD fell short of testing 1.2450 , as it traded between 1.2346 and 1.2419 before closing slightly lower at 1.2400 (-0.01%).Price developments appear to be part of a consolidation phase and GBP/USD is likely to trade sideways today, between 1.2350 and 1.2425”.
Next 1-3 weeks: “Last Thursday (Jan 26, GBP/USD at 1.2400), we highlighted that GBP/USD is likely to break above 1.2450, but as the bullish momentum is not strong, it remains to be seen if GBP/USD can break 1.2500. pair has not been able to move much higher, bullish momentum has waned, but as long as 1.2315 (previously 1.2300 “strong support” level) is not broken, there is still a small chance GBP/USD to break above 1, 2450″.
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.