The pair GBP / USD could accelerate the rally to the 1.4100 level in the coming weeks, according to currency strategists at UOB Group.
24 hour view: “We highlighted yesterday that GBP / USD ‘could break 1.4050, but 1.4100 is likely out of range for now.’ Our view was not wrong as GBP / USD rose to 1.4086. While the pair is overbought, the rally current has room to test 1.4100 first before a pullback can be expected. For today, GBP / USD is not expected to challenge the next resistance at 1.4150. On the downside, a breakout of 1.4010 would indicate that the current upward pressure will ease. has eased (minor support is at 1.4035) ”.
Next 1-3 weeks: “Yesterday (Feb 22, GBP / USD 1.4030), we indicated that ‘bullish momentum remains strong and GBP / USD could advance further to 1.4100’. Subsequently, GBP / USD rose to 1.4086 and there is no change in our opinion. Going forward, a clear breakout of 1.4100 would shift focus to 1.4150. On the downside, a breakout of 1.3940 (the ‘strong support’ level was at 1.3920 yesterday) would indicate that the positive phase in GBP / USD that started about 2 weeks ago is over. “