In the opinion of Lee Sue Ann, Economist at UOB Group, and Quek Ser Leang, Market Strategist, GBP/USD rally could target 1.2270 zone again short term.
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24 hour view: “We highlighted last Friday that “there is room for GBP/USD weakness to extend to 1.1850 before stabilization is likely.” Although GBP/USD subsequently fell to a low of 1.1846, it reversed direction and shot up a high of 1.2100.The pair extended its advance in the early hours of the Asian session today and could continue to rise, although the resistance of 1.2200 is probably out of reach today (there is another resistance at 1.2160).On the downside, it is unlikely any pullback to challenge the 1.2010 support (minor support is at 1.2060).”
Next 1-3 weeks: “Our forecast last Friday (Jan 6, GBP/USD at 1.1915) of ‘further GBP/USD weakness’ was quickly proven wrong as it flew above our ‘strong resistance’ of 1.2020 (1.2100 high). Although the rapid rise seems to be anticipating itself, GBP/USD could continue to rise, but whether it can build enough momentum to reach 1.2270 remains to be seen.To the downside, a break of 1.1950 would indicate that GBP/USD will not strengthen. more.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
