Further upside momentum could push GBP/USD back above the 1.3300 level in the coming weeks, currency strategists at UOB Group suggest.
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24 hour view: “Yesterday, we expected GBP/USD to ‘trade sideways within a range of 1.3120/1.3220’. GBP/USD subsequently dipped to 1.3121 before pulling off a surprisingly strong rally that not only broke above the top of the expected range in 1.3220 but also another strong resistance at 1.3260 (high 1.3274) The rally has room to extend but overbought conditions suggest major resistance at 1.3325 is likely out of reach for now (minor resistance is at 1.3300).On the downside, a break of 1.3210 (minor support at 1.3235) would indicate that the current upside pressure has eased.”
Next 1-3 weeks: “We turned positive on GBP/USD last Thursday (March 17, GBP/USD at 1.3150) where we indicated that the bounce in GBP/USD could extend to 1.3320. As GBP/USD strengthens, in our Yesterday’s latest narrative (March 22, GBP/USD at 1.3160), we indicated there is room for GBP/USD to move above 1.3220, adding, ‘any further advances are expected to face solid resistance at 1.3260’. GBP/USD dipped to 1.3221 before breaking above 1.3220 and 1.3260 (high 1.3274) Strong momentum is likely to lead to further GBP/USD strength at 1.3325 and possibly 1.3365 Upside risk intact as long as GBP/USD does not move below the ‘strong support’ at 1.3160 (the level was at 1.3090 yesterday).
Source: Fx Street
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