According to UOB Group currency strategists Lee Sue Ann and Quek Ser Leang, the GBP/USD could now attempt a move towards the 1.2600 area In the next weeks.
Key comments
24 hour view: “Yesterday, we expected GBP/USD to ‘extend gains’, but were of the opinion that ‘major resistance at 1.2400 is not expected to come into play’. The expected GBP/USD strength far exceeded our expectations as GBP/ USD broke above 1.2400 and surged to 1.2498 Deeply overbought rally could extend further but unlikely to hold above 1.2550 (next resistance is at 1.600) To the downside a break of 1.2420 (minor support is at 1.2450) would indicate current upside pressure has eased.”
Next 1-3 weeks: “Yesterday (May 17, GBP/USD at 1.2325) we highlighted that ‘the recent phase of weakness has come to an end and there is room for the current rebound to extend’. While our view on a rebound turned out to be correct, the Strong expected resistance at 1.2400 failed to materialize as GBP/USD took off and soared 1.42% (close 1.2495), its biggest one-day gain since October 2020. The strong momentum suggests there is room for GBP to move. /USD keep advancing to 1.2600 At this point it is premature to expect a break of the early May high near 1.2640 To the downside, the ‘strong support’ level at 1.2360 is unlikely to be threatened, at least in this couple of days.”
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
