Pound Sterling (GBP) appears to have enough momentum to rise further vs US Dollar (USD); the levels to monitor are 1.2930 and 1.2975. In the longer run, outlook for GBP remains positive; the next technical target is at 1.2975, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Outlook for GBP remains positive
24-HOUR VIEW: “Yesterday, when GBP was at 1.2790, we highlighted that ‘while the rapid rise appears set to continue, the next major resistance at 1.2900 is likely out of reach today.’ Our view of GBP strength was incorrect, even though it managed to touch 1.2901 in the late NY session. Although deeply overbought, GBP appears to have enough momentum to rise further. The levels to monitor are 1.2930 and 1.2975. Conversely, on the downside, the levels to watch are 1.2840 and 1.2800.”
1-3 WEEKS VIEW: “Yesterday (06 Mar, spot at 1.2790), we pointed out, ‘risk for GBP remains clearly on the upside, and the level to monitor is 1.2900.’ We also pointed out that ‘the ‘strong support’ at 1.2680 will likely remain intact for the next couple of days.’ GBP subsequent rose to a high of 1.2901. We continue to hold a positive outlook in GBP. The next technical target is at 1.2975. On the downside, the ‘strong support’ level has moved higher to 1.2760.”
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