The upward momentum GBP / USD could now extend to the mid-point of 1.2600, according to FX Strategists at UOB Group.
24 hour view: “We highlighted the strong bullish momentum yesterday and expected the GBP to strengthen, but we felt” the main resistance at 1.2600 is probably out of reach. While our opinion was not wrong as the GBP eased from a high of 1.2575, the GBP opened on a firm note this morning and rose above 1.2575. From there, the GBP could further advance, although a sustained rise above the main resistance of 1.2650 is unlikely for today. Support is at 1.2540 followed by 1.2500. “
1-3 weeks: “We just yesterday adopted a positive outlook for the GBP (June 02, spot at 1.2500) and we expected the GBP to” move towards 1.2600 “. Our point of view is unchanged and once above 1.2600, the April peak near 1.2648 could appear quickly (the next resistance is at 1.2700). After yesterday’s strong advance, the level of “solid support” has risen to 1.2460 from yesterday’s level at 1.2360. “