GBP/USD may want to improve on a greater sustainable trend as soon as 1.2550 is cleared, endorse UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
24-hour view: “Our view for GBP to drop in addition used to be unsuitable as it rebounded strongly and retraced extra than Tuesday’s complete drop (to a excessive of 1.2516). Despite the advance, there is no good sized amplify in momentum and alternatively of strengthening a great deal further, GBP is greater probable to exchange sideways in 1.2420/1.2520 range.”
Next 1-3 weeks: “Yesterday (26 Apr, spot at 1.2415), we highlighted that ‘while the downward danger is starting to build, GBP has to damage and remain under 1.2345 earlier than a sustained decline is likely’. We added, ‘the risk of GBP breaking simply beneath 1.2345 will expand as lengthy as it stays beneath 1.2490 in the subsequent few days’. We did no longer count on the robust jump that took out our ‘strong resistance’ degree of 1.2490 (high of 1.2516). Despite the advance, upward momentum has now not accelerated much. In order to boost in a sustained manner, GBP has to destroy and continue to be above 1.2550. The probability of GBP breaking simply above 1.2550 will continue to be intact as lengthy as it does go beneath 1.2370. Looking ahead, the subsequent resistance degree above 1.2550 is at 1.2665.”