GBP / USD bullish momentum continues to improve and could accelerate after a break above 1.4050 in the coming weeks, suggest currency strategists at UOB Group.
Key Comments:
24 hour view: “Our expectation that GBP / US would ‘consolidate’ yesterday was incorrect as it rose to 1.3970 during the American session. The strong bounce has room to test the main resistance at 1.4020. In view of the overbought conditions, GBP / USD may not be able to sustain above this level (minor resistance is at 1.4000). On the downside, a breakout of 1.3915 (minor support at 1.3940) would indicate that the current bullish pressure has eased. ”
Next 1-3 weeks: “We have held the same opinion since last Thursday (March 11, GBP / USD at 1.3930) in which the pair ‘has entered a consolidation phase and is expected to trade between 1.3810 and 1.4020’. The GBP / USD tested the lower part of the expected range as it fell to 1.3809 on Tuesday (March 16.) The strong bounce yesterday (March 17) indicates that GBP / USD is likely to test the high of the expected range at 1.4020. The bullish momentum is starting to improve, but the pair has to close at 1.4050 before a sustained advance can be expected.The odds of a sustained advance are not high for now, but would remain intact as long as GBP / USD does not move down. below 1.3880 “.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
