Cable could accelerate the upside to the 1.4100 mark in the next weeks, according to UOB Group’s FX Strategists.
Key Quotes
24-hour view: “We highlighted yesterday that GBP ‘could break 1.4050 but 1.4100 is likely out of reach for now’. Our view was not wrong as GBP rose to 1.4086. While overbought, the current advance has scope to test 1.4100 first before a pullback can be expected. For today, GBP is not expected to challenge the next resistance at 1.4150. On the downside, a break of 1.4010 would indicate the current upward pressure has eased (minor support is at 1.4035).”
Next 1-3 weeks: “Yesterday (22 Feb, spot t 1.4030), we indicated that ‘upward momentum remains strong and GBP could advance further to 1.4100’. GBP subsequently rose to 1.4086 and there is no change in our view. Looking ahead, a clear break of 1.4100 would shift the focus to 1.4150. On the downside, a break of 1.3940 (‘strong support’ level was at 1.3920 yesterday) would indicate that the positive phase in GBP that started about 2 weeks ago has run its course.”
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