GBP/USD: Resistance at 1.2410 likely out of reach today – UOB Group

The British Pound (GBP) is expected to continue advancing; significant resistance at 1.2410 is likely out of reach today. Long-term, the GBP outlook is positive, anticipating a move towards 1.2410, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

GBP outlook is positive

24 HOUR VIEW: “Our view that the GBP would ‘trade with a bearish bias’ yesterday was incorrect. The GBP soared, breaking through several resistance levels with ease (the high has been 1.2344). Although we expect the GBP to continue to advance today, significant resistance at 1.2410 is likely out of reach today. It is worth noting that there is another resistance level at 1.2380. On the downside, any pullback is likely to remain above. 1.2240.”

1-3 WEEK VIEW: “Yesterday (January 20, spot at 1.2170), we highlighted, “there has been a tentative buildup of momentum, but GBP must clearly break below the 1.2100/1.2130 support zone before further weakness can be expected.” The tentative buildup of momentum quickly faded as the GBP spiked above our ‘strong resistance’ level in 1.2305. From here, we are revising our outlook for GBP to positive, anticipating a move towards 1.2410. We will maintain our outlook as long as the ‘strong support’ level, currently at 1.2210, is not breached. will settle higher in the coming days.”

Source: Fx Street

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