GBP/USD could extend the rebound to the 1.2580 area in the short term, according to Quek Ser Leang, Market Strategist at UOB Group, and Lee Sue Ann, Economist.
24-hour outlook: Yesterday, we were of the opinion that “the exaggerated recovery is seriously overstated, but GBP/USD could rise to 1.2530 before stabilizing.” Our opinion was wrong. Instead of rising to 1.2530, GBP/USD fell to 1.2404. GBP/USD appears to have entered a consolidation phase, and is likely to trade in a range of 1.2380/1.2480 today.
Next 1 to 3 weeks: Yesterday (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. We did not expect GBP/USD to pull back to a low of 1.2400. That said, we still maintain the same opinion. Only a break of 1.2350 (no change to yesterday’s “strong support” level) would indicate that GBP/USD is not advancing any further.
Source: Fx Street
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