The pair GBP/USD is now seen in the range of 1.2430-1.2600 in the coming weeks, according to currency strategists at the UOB Group Lee Sue Ann and Quek Ser Leang.
Key comments
24 hour view: “Yesterday we held the view that GBP/USD ‘could move above 1.2600 but is unlikely to break the next major resistance at 1.2640’. GBP/USD subsequently rose as high as 1.2600 and tumbled to 1.2475 before bouncing The price action has given rise to a mixed outlook and GBP/USD is likely to trade in a range of 1.2480/1.2580 today.”
Next 1-3 weeks: “After GBP/USD surged to 1.2601 yesterday (May 24, GBP/USD at 1.2575) we highlighted that although the upside momentum hasn’t improved much, GBP/USD could move towards the main resistance at 1.2640. Subsequently GBP/USD retested the 1.2600 level before falling below our ‘strong support’ at 1.2480 (low 1.2475).The break of our ‘strong support’ indicates that the recent upward pressure has subsided. Going forward, further GBP/USD strength is not ruled out, but it has to close above 1.2600 before a sustained advance is likely.In the meantime, GBP/USD is likely to consolidate and trade between 1.2430 and 1.2600.” .
Source: Fx Street
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