GBP/USD: A sustained move above 1.2600 looks unlikely – UOB

Cable’s upside remains well and sound so far, although a solid move beyond the 1.2600 mark appears unlikely for the time being, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Instead of ‘trading sideways between 1.2425 and 1.2490’, GBP edged higher to 1.2536 before ending the day on a firm note at 1.2504 (+0.28%). Despite the patchy momentum, GBP could advance above the strong resistance at 1.2550. For today, a move beyond the next resistance at 1.2600 would come as a surprise. Support is at 1.2475 followed by 1.2430.”

Next 1-3 weeks: “There is not much to add to the update from yesterday (13 Apr, spot at 1.2460). As highlighted, the bias is for further GBP strength towards 1.2550. While GBP subsequently rose to 1.2536 and closed on a firm note at 1.2504 (+0.28%), upward momentum still appears to be lackluster. That said, after yesterday’s price action, a move above 1.2550 would not be surprising but from here, the prospect for a sustained rise above 1.2600 is not high. Meanwhile, the ‘strong support’ level has moved higher to 1.2390 from 1.2350. Only a breach of 1.2390 would indicate the current mild upward pressure has eased.”