Further bullish momentum could lift GBP/USD to the 1.2390 zone in the short term, according to Lee Sue Ann, UOB Group Economist, and Quek Ser Leang, Market Strategist.
24 hour view: “We did not expect the strong GBP/USD rally to 1.2300 (we expected GBP/USD to be range bound). Bullish momentum has improved, although not much. While GBP/USD is likely to continue strengthening, it is unlikely to hold above 1.2330 (next resistance is at 1.2390). Support is at 1.2260. A break of 1.2230 would indicate that GBP/USD would not advance further.”
Next 1-3 weeks: “We have maintained a positive view of GBP/USD for more than a week. Yesterday (Jan 17, GBP/USD at 1.2205), we indicated that although there is room for GBP/USD to continue advancing, although the probability of a rise Sustained above 1.2330 is not high GBP/USD peaked at 1.2300 in the American session before closing firm at 1.2287 (+0.75%) Bullish momentum has improved, though not much. Here, we expect GBP/USD to rally to 1.2390. On the downside, a break of 1.2170 (“strong support” level was previously at 1.2125) would indicate that the current bullish pressure has eased.”
Source: Fx Street
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