GBP/USD: Scope for further upside near term – UOB

Cable could edge higher and test the area above the 1.2500 mark in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for GBP yesterday was that it ‘could consolidate and trade between 1.2390 and 1.2500’. GBP subsequently registered a narrower range than expected (1.2391/1.2485). The outlook remains mixed and GBP could continue to consolidate from here. Expected range for today, 1.2385/1.2490.”

Next 1-3 weeks: “We highlighted last Friday that ‘the odds for a lower GBP have diminished’. After trading in a quiet manner for a couple of days, GBP took out the 1.2400 ‘strong resistance’ and soared to a high of 1.2455 yesterday (27 Apr). The tentative pick-up in momentum suggests GBP could edge higher from here but GBP has to crack 1.2535 before a stronger and more sustained advance can be expected. Overall, the outlook for GBP is viewed as mildly positive as long as it does not move below 1.2320 within these few days.”