GBP/USD: GBP set to test 1.2375 – UOB Group

Chance for Pound Sterling (GBP) to test 1.2375; major resistance at 1.2410 is unlikely to come into view. GBP view is positive, anticipating a move to 1.2410, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Resistance at 1.2410 is unlikely to come into view

24-HOUR VIEW: “While we expected GBP to ‘continue to advance’ yesterday, we indicated that ‘the significant resistance at 1.2410 is probably out of reach.’ Our view was incorrect. Instead of continuing to advance, GBP traded between 1.2232 and 1.2361. GBP closed slightly higher by 0.23% at 1.2358. Although there is no significant increase in momentum, there is a chance for GBP to test 1.2375. The major resistance at 1.2410 is unlikely to come into view. On the downside, support levels are at 1.2300 and 1.2260.”

1-3 WEEKS VIEW: “We revised our GBP view to positive yesterday (21 Jan, spot at 1.2330), anticipating a move to 1.2410. We indicated that ‘we will maintain our view as long as the ‘strong support’ level, currently at 1.2210, is not breached.’ Our view remains unchanged.”