GBP/USD could still revisit 1.2580 – UOB


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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD bounces toward 1.0450 amid risk recovery

EUR/USD bounces toward 1.0450 amid risk recovery

EUR/USD is bouncing back toward 1.0450 in European trading on Wednesday, erasing losses induced by US President Trump tariff threats. Trump warned that tariffs are coming on the European Union. A recovery in risk sentiment drags the US Dollar lower, underpinning the pair. 

EUR/USD News
GBP/USD recover to 1.2350 on fresh US Dollar weakness

GBP/USD recover to 1.2350 on fresh US Dollar weakness

GBP/USD has regained lost momentum and hovers near 1.2350 in the European session on Wednesday. The pair draws support from a renewed US Dollar selling as risk sentiment improves despite US President Trump's tariff threats. 

GBP/USD News
Gold price stands firm near multi-month peak; seems poised to climb further

Gold price stands firm near multi-month peak; seems poised to climb further

Gold price sticks to positive bias for the third successive day on Wednesday and trades near its highest level since November 1 during the first half of the European session. The uncertainty around US President Donald Trump's trade policies turns out to be a key factor that continues to drive haven flows towards the precious metal.

Gold News
World Liberty Financial adds $47 million of ETH and wBTC each to celebrate Trump’s inauguration

World Liberty Financial adds $47 million of ETH and wBTC each to celebrate Trump’s inauguration

Donald Trump-backed DeFi platform World Liberty Financial (WLFI) added $47 million of wrapped Bitcoin (wBTC) and Ethereum (ETH) each to celebrate Trump’s inauguration as the 47th President of the United States on Monday.

Read more
Prepare for huge US trade changes as Trump goes America first

Prepare for huge US trade changes as Trump goes America first

You can be sure that big changes are coming as far as US trade is concerned, even if we didn't get any new tariffs on President Trump's first day in office. A comprehensive investigation into US trade relationships was initiated via a memorandum. China, Canada, and Mexico are clearly in the immediate firing line. 

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures