GBP/USD shifts the attention to 2020 highs near 1.3500 – UOB

The upside momentum in Cable may want to push the pair to any other practicable go to of the every year highs close to the 1.3500 stage (September 1).

Key Quotes
24-hour view: “Our expectation for GBP to alternate inside a 1.3300/1.3400 vary was once incorrect as it subsequently cracked 1.3400 and leapt to a excessive of 1.3442. While stipulations are overbought, there is no signal of weak point just. GBP ought to make stronger similarly even even though overbought prerequisites recommend a sustained upward thrust above the year-to-date excessive of 1.3481 is not going (next resistance is at 1.3515). Support is at 1.3390 accompanied by means of 1.3365.”

Next 1-3 weeks: “We have held a superb view in GBP because mid-November. After GBP failed to ruin 1.3400 on a few attempts, we indicated the day past (01 Dec, spot at 1.3325) that ‘in order to rejuvenate the flagging momentum, GBP has to pass and continue to be above 1.3365 inside these 1 to two days or a spoil of 1.3280 would now not be shocking and would point out that the nice segment in GBP has run its course’. GBP subsequently blast previous 1.3400 for the duration of NY hours and surged to a excessive of 1.3442. From here, all eyes are on the year-to-date excessive of 1.3481. This stable resistance is accompanied intently with the aid of 1.3516, the top lower back in 2019. All in, similarly GBP electricity is possibly as lengthy as it does now not cross under 1.3330 (‘strong support’ stage formerly at 1.3280).”

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