GBP/USD: Further gains in the pipeline above 1.2220 – UOB
|In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, sustainable gains in GBP/USD look likely once the pair clears the 1.2220 level.
Key Quotes
24-hour view: “We highlighted last Friday that ‘Mild upward pressure could lead to GBP edging higher but a sustained advance above 1.2150 is unlikely’. The anticipated advance exceeded our expectations as GBP soared to 1.2201 before closing on a firm note at 1.2181 (+0.58%). While GBP could advance further, a sustained rise above 1.2220 appears unlikely. Support is at 1.2155, followed by 1.2125.”
Next 1-3 weeks: “Our latest narrative was from last Thursday (16 Mar, spot at 1.2075) where GBP is likely to trade in a broad consolidation range, expected to be between 1.1950 and 1.2190. GBP edged slightly above 1.2190 on Friday (high of 1.2201) and upward momentum is beginning to build. However, GBP has to break and stay above 1.2220 before a sustained rise is likely (the next resistance is at 1.2270). The risk of GBP breaking clearly above 1.2220 will remain intact as long as it stays above 1.2095 in the next few days.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.