GBP/USD could still revisit 1.2580

There still seem to be room for GBP/USD to reach the 1.2580 zone in the near term, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: We indicated yesterday that “there is room for GBP to rise further, but any advance is likely to encounter solid resistance near last week’s high, near 1.2505.” We added, “In order to maintain the buildup in momentum, GBP must stay above 1.2420 (minor support is at 1.2440).” GBP stayed above the minor support of 1.2440 (low of 1.2448), rose, and broke above 1.2505 (high of 1.2518). Upward momentum has increased, albeit not by as much as we would like. That said, as long as GBP stays above 1.2460 (minor support is at 1.2480), it could continue to rise. Based on the current level of momentum, 1.2580 is likely out of reach for now (there is another resistance at 1.2545).

Next 1-3 weeks: Last Wednesday (15 Nov, spot at 1.2490), we highlighted that GBP “is likely to continue to advance, but it has to break clearly above 1.2580 before a further sustained rise is likely.” After GBP pulled back from 1.2506, we highlighted yesterday that GBP “has to break and stay above 1.2505 before an advance to 1.2580 can be expected.” While GBP broke above 1.2505 in NY trade (high of 1.2518), the price action only generated a mild increase in momentum. However, as long as 1.2420 (‘strong support’ level previously at 1.2350) is not breached, there is still a chance for GBP to rise to 1.2580.

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.