Cable’s bullish prospects remain unchanged in the short-term, noted UOB Group’s FX Strategists.
24-hour view: “GBP closed at 1.3852 last Friday (+0.26%) before trading on a firm note after opening this morning. A break of 1.3880 seems likely but the next major resistance at 1.3920 could be out of reach for now. Support is at 1.3845 followed by 1.3810.”
Next 1-3 weeks: “In our latest narrative from last Wednesday (10 Feb, spot at 1.3810), we highlighted that ‘upward momentum has improved considerably and GBP could extend its gains to 1.3880’. GBP is currently holding just below 1.3880 and break of this level would shift the focus to 1.3950. That said, overbought shorter-term conditions suggest that it may take a few days for 1.3950 to come into the picture. Overall, the current positive view in GBP is deemed intact as long as it does not move below 1.3780 (‘strong support’ level previously at 1.3730).”