GBP/USD could extend the upside to 1.2665 – UOB

The continuation of the uptrend could lift GBP/USD to the 1.2665 level in the near term, suggest Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “GBP traded in a relatively narrow range between 1.2550 and 1.2599 yesterday before closing little changed at 1.2575 (+0.08%). Despite the quiet price movements, the underlying tone appears to be firm and GBP could break above 1.2600. However, the major resistance at 1.2665 is unlikely to come into view. Support is at 1.2545; a break of 1.2515 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Two days ago (03 May, spot at 1.2475), we held the view that GBP ‘is likely to trade in a 1.2395/1.2565 range for the time being’. However, GBP broke above 1.2565 and yesterday, it eked out a fresh 11-month high of 1.2599. Despite the advance, there is no clear improvement in upward momentum. That said, as long as 1.2470 is not breached, GBP is likely to ratchet higher towards the major resistance at 1.2665. At this stage, the odds for a sustained rise above this level are not high.”