In the opinion of the currency strategists at UOB Group, GBP / USD could advance to the 1.4235 level as long as it remains above 1.4160 In the next weeks.
Key Comments:
24 hour view: “Our expectation for the British pound to ‘trade downward bias’ was incorrect as it spiked to 1.4146 before closing firm at 1.4139 (+ 0.29%). Bullish momentum has improved and GBP / USD could break last week’s high at 1.4167. For today, the next resistance at 1.4200 is probably out of reach. Support is at 1.4115 followed by 1.4095 “.
Next 1-3 weeks: “We continue with the same opinion as yesterday (May 17, GBP / USD at 1.4085). As highlighted, the British pound has to move and stay above 1.4160 or the prospect of GBP / USD moving to the next major resistance at 1.4235 would decline rapidly. Subsequently, the British pound rose to 1.4146 before closing at 1.4139. The bullish momentum has picked up again, but GBP / USD has to close above 1.4160 before a sustained advance can be expected. Conversely, a breakout of 1.4050 (the ‘strong support’ level was at 1.4000 yesterday) would indicate that the GBP strength that started early last week is over. “
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