In the opinion of economist Lee Sue Ann and market strategist Quek Ser Leang of UOB group, the GBP/USD could still advance to the 1.2450 zone in the coming weeks.
24 hour perspective: “Yesterday we highlighted that the bias for the pound remained bullish, but a sustained advance above 1.2445 was unlikely. However, after briefly rising to 1.2431, the pound pulled back to 1.2345 before quickly rebounding to close little changed at 1.2412 (+0.09%) Although the bullish momentum has diminished, the Pound may test 1.2450 first before risk of a more sustained retracement increases. The main resistance of 1.2500 is not expected to be reached. Support is at 1.2385, followed by 1.2350″.
Next 1-3 weeks: “There is no change in our view from yesterday (Jan 26, pair at 1.2400) that the pound is likely to break above 1.2450, but as the bullish momentum is not strong, it remains to be seen if it can break 1.2500. In general, only A break of 1.2300 (no change at the ‘strong support’ level) would indicate that the current slight bullish pressure has eased.”
Source: Fx Street
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