GBP/USD: A test of 1.2400 appears not favoured near term – UOB

A Research by CurrencyVeda

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group say that a potential move to the 1.2400 zone in the GBP/USD seems to have lost some momentum recently.

Important Quotations Day and Night: Yesterday, the GBP barely managed to reach a new 3-week high of 1.2341 before faltering and closing at 1.2285 (+0.13%). Since there is less upward pressure now, the pound is unlikely to gain much ground. The range in which GBP is projected to move today is between 1.2230 and 1.2330.

Within the next three weeks: “From the week’s beginning, we have predicted that GBP will rise. The possibility of climbing to 1.2400 has decreased, according to our most recent update from two days ago (22 Mar, spot at 1.2220). GBP yesterday increased to 1.2341 before declining to settle at 1.2285 (+0.13%). Despite the fact that the GBP is still strong, short-term upward momentum is starting to slow down. This, along with overbought conditions, suggests that 1.2400 may not be within reach this time. Therefore, only a violation of 1.2190 (a prior “strong support” level at 1.2140) would signal that GBP is not gaining additional strength.

Source: FxStreet