Room for GBP to rise to 1.3240 earlier than levelling off. Within the longer run, improve in momentum is prone to result in additional GBP power, doubtlessly breaking this yr’s excessive, close to 1.3270, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann observe.
Room for GBP to rise to 1.3240
24-HOUR VIEW: “GBP rose sharply yesterday, closing at 1.3216 (+0.69%). Whereas the sharp advance appears to be overdone, there’s room for GBP to rise 1.3240 earlier than levelling off. The foremost resistance at 1.3270 is unlikely to return underneath risk. To maintain the momentum going, GBP should not break beneath 1.3170 with minor assist at 1.3195.”
1-3 WEEKS VIEW: “GBP fell to inside a few pips of 1.3000 final week, then rebounded strongly. Yesterday, it closed on a powerful observe at 1.3216 (+0.69%). The rise in momentum is prone to result in additional GBP power, doubtlessly breaking above this yr’s excessive, close to 1.3270. On the draw back, ought to GBP break beneath 1.3120, it might imply that the buildup in momentum has light.”
