GBP/USD: Further gains could revisit 1.2335 before 1.2400 – UOB

UOB Group currency strategists Lee Sue Ann and Quek Ser Leang point out that GBP/USD rally has the potential to advance to the 1.2335 level before visiting 1.2400 In the next weeks.

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24 hour view: “GBP/USD’s sharp rally to a high of 1.2292 yesterday came as a surprise (we had expected GBP/USD to trade in a range of 1.2110/1.2230). The rapid rally looks set to continue, but there is room for GBP/ USD breaks above 1.2300 first before pullback risk rises. For today, major resistance at 1.2335 is unlikely to come into the picture. Support is at 1.2225, followed by 1.2190.”

Next 1-3 weeks: “Last Thursday (July 28, GBP/USD at 1.2165), we had the view that GBP/USD is likely to trade with a bullish bias towards 1.2240. After GBP/USD rose to a high of 1.2245 and reversed, yesterday (Aug 1, GBP/USD at 1.2170) we highlighted that the GBP/USD trend remains bullish, but we think that the main resistance at 1.2245 may not be easy to break, we did not expect the subsequent strong rally as GBP/USD broke above 1.2245 and surged to a high of 1.2292 This momentum is likely to drive GBP/USD further strength towards 1.2335, and possibly as far as 1.2400 Support is at 1.2190 but only a break of 1.2135 would indicate that the current upward pressure has subsided.”

Source: Fx Street

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