Further upside could lift GBP/USD to the 1.2340 zone in the near term, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: GBP rose by 0.69% yesterday (NY close of 1.2249). Upward momentum has increased, albeit not much. Today, GBP could test 1.2290 before the risk of a pullback increases. The mid-October high near 1.2340 is not expected to come into view. Support is at 1.2225, followed by 1.2200.
Next 1-3 weeks: After dipping to a low of 1.2093 last week, GBP rebounded, and yesterday it reached a high of 1.2258. Upward momentum appears to be building, and GBP is likely to rise towards 1.2340 in the next few days. At this stage, the likelihood of GBP breaking clearly above this level is not high. If GBP breaks the ‘strong support’ at 1.2165, it would mean that it is unlikely to rise to 1.2340.
Source: https://www.fxstreet.com/news/gbp-usd-upward-momentum-continues-to-build-uob-202310240556