GBP/USD: Looks open for more gains, according to UOB

The possibility of further rises in the GBP/USD exchange rate is still present, with the next significant objective in the 1.2400 area, according to the economist at UOB Group.

Important Quotations:

We stated yesterday that despite the gain, the rising momentum has not much improved. However there is an opportunity for the GBP to move to 1.2370 before the chance of a retreat increases, we continued. In London trade, the pound reached a high of 1.2362 before falling to close the day at 1.2314 (-0.22%). Although the underlying tone has mellowed a little, any decrease in the GBP is expected to be contained within a range of 1.2270 and 1.2340. In other words, it's doubtful that 1.2270 will break.

Within the next three weeks: Our forecast from yesterday (29 Mar, spot at 1.2330) is still accurate. As was emphasized, there seems to be a cautious upward momentum forming. The GBP must breach and hold above 1.2400 to rise steadily. As long as GBP remains above 1.2240 in the upcoming one to two days, there is currently a low probability that 1.2400 will be broken. Going forward, 1.2450 is a strong level that serves as the next resistance level above 1.2400.