GBP/USD faces a probable move to 1.3715 – UOB

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Cable’s upside could reach 1.3715 ahead of 1.3750 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectations for GBP to ‘weaken’ yesterday were wrong as it traded in a choppy manner before closing on a firm note at 1.3664 (+0.55%). While upward momentum has not improved by all that much, there is room for GBP to advance to 1.3695, possibly 1.3715. Any advance in GBP is unlikely to challenge the major resistance at 1.3750. Support is at 1.3640 followed by 1.3615.”

Next 1-3 weeks: “We have expected GBP to trade within a 1.3500/1.3680 range since early this week (see annotations in the chart below).GBP rose strongly yesterday and the advance has gathered momentum. From here, GBP is likely to head higher to 1.3715. A break of 1.3715 would shift the focus to 1.3750. Only a break of the ‘strong support’ (currently at 1.3595) would indicate that GBP is not ready to head higher.”