GBP/USD: It is expected to trade between 1.1925 and 1.2120 – UOB

According to Lee Sue Ann, UOB Group Economist, and Quek Ser Leang, Market Strategist, GBP/USD is expected to trade between 1.1925 and 1.2120 in the near term horizon.

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24 hour view: “Our expectations that GBP/USD would continue to weaken were wrong as it bounced to a high of 1.2049. Although the bullish momentum has not improved much on the bounce, GBP/USD could go as high as 1.2070. It is not expected that the next Resistance at 1.2120 is threatened. On the downside, a break of 1.1985 (minor support is at 1.2005) would indicate that the current mild bullish pressure is over.”

Next 1-3 weeks: “Last Friday (March 3, GBP/USD at 1.1985), we indicated that while bearish momentum is starting to consolidate, GBP/USD has to break 1.1900 before a sustained decline is likely. We add that “the The possibility of GBP/USD breaking 1.1900 will remain intact as long as it does not break above 1.2045 in the next few days”. The pair reached a high of 1.2049 during the American session. The break of our “strong resistance” indicates that the bearish momentum has faded To look at it another way, rather than heading lower, GBP/USD is likely to continue to consolidate, predictably between 1.1925 and 1.2120.”