There still appears to be room for GBP/USD to reach the 1.2580 area in the short term, according to UOB Group economist Lee Sue Ann and Market Strategist Quek Ser Leang.
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24-hour outlook: Yesterday we noted that “there is room for GBP/USD to continue rising, but any advance is likely to encounter solid resistance near last week’s high near 1.2505.” And we added: “To maintain the momentum build-up, GBP/USD must stay above 1.2420 (minor support is at 1.2440).” GBP/USD held above minor support at 1.2440 (low 1.2448), rose and broke above 1.2505 (high 1.2518). Bullish momentum has increased, although not as much as we would like. That said, as long as GBP/USD holds above 1.2460 (minor support is at 1.2480), it could continue to rise. Given the current momentum level, 1.2580 is likely out of reach for now (there is another resistance at 1.2545).
Next 1-3 weeks: Last Wednesday (November 15, GBP/USD at 1.2490), we highlighted that GBP/USD “is likely to continue advancing, but has to break clearly above 1.2580 before a further sustained rise is likely.” After GBP/USD retreated from 1.2506, yesterday we highlighted that GBP/USD “needs to break and hold above 1.2505 before a rally to 1.2580 can be expected.” Although GBP/USD broke above 1.2505 during the American session (high 1.2518), the price action only generated a slight increase in momentum. However, as long as it does not break above 1.2420 (“strong support” level previously at 1.2350), there is still a chance for GBP/USD to rise to 1.2580.
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.
