The rebound of the pair GBP / USD could probably hit the 1.3890 level in the coming weeks, say UOB Group currency strategists.
Key Comments:
24 hour vision: “We do not anticipate the short-lived fall of the British pound to 1.3717 and the subsequent sharp rise to 1.3850. While the fast bounce appears to be getting ahead of itself, there is room for the advance to test 1.3865 first before declining. The next resistance at 1.3900 is not expected to enter the picture. Support is at 1.3800 followed by 1.3775 “.
Next 1-3 weeks: “Our latest note from last Thursday (April 15, GBP / USD at 1.3780) where we highlighted that ‘while short-term momentum has not improved much, a breakout of 1.3810 is not ruled out.’ We add, ‘GBP / USD has to close above 1.3810 before a sustained advance can be expected (next resistance is at 1.3850). ‘We also note that’ the outlook for such a move is not high, but would remain intact as long as GBP / USD does not break. move below 1.3715 these few days. ” However, we do not anticipate the ‘accelerated’ price action of last Friday, where GBP / USD briefly plunged to 1.3717 before spiking to 1.3850. While the advance has covered ground In a short time, the pair could strengthen further to 1.3890. This level is followed by another fairly strong resistance at 1.3920 (monthly high). On the downside, a breakout of 1.3750 (‘strong support’ level) would indicate that the GBP / USD is not ready to follow r moving forward. “
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