GBP/USD poised for further upside – UOB

FX Strategist at UOB Group do not rule out extra gains in Cable in the near term

Key Quotes

24-hour view: “Expectation for sideway trading was wrong as GBP rocketed to a high of 1.4150 yesterday. The rally appears to have enough momentum to extend further but a clear break above 1.4200 would come as a surprise (next resistance is at 1.4230). That said, only a move back below 1.4075 would indicate that the current strong upward pressure has eased. Minor support is at 1.4110”.

Next 1-3 view: “We highlighted on Tuesday (20 Mar, spot at 1.4025) that there is “scope for further extension to 1.4145 but a sustained break seems unlikely”. GBP staged a strong rally yesterday and hit a high of 1.4150 before closing on a very strong note. The rapid pace of advance suggests that further GBP strength cannot be ruled out but at this stage, it would be surprising if GBP can move above the February’s peak near 1.4280 (1.4230 is already quite a strong resistance). Overall, GBP is expected to continue to stay underpinned as long as 1.4000 is intact (key support previously at 1.3930)”.