GBP/USD remains focused on 1.2440 – UOB

Sustainable gains in GBP/USD are likely above 1.2440 according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘further GBP strength appears likely even though it remains to be seen if GBP can clearly break above 1.2240’. However, GBP did not strengthen further as it traded in a relatively quiet manner between 1.2139 and 1.2203. The price movements are likely part of a consolidation phase and today, GBP is likely to trade in a range of 1.2100/1.2200.”

Next 1-3 weeks: “Yesterday (14 Mar, spot at 1.2185), we highlighted that upward momentum is beginning to build but GBP has to break clearly above 1.2440 before a sustained advance is likely. There is no change in our view. In the next few days, the chance of a clear break above 1.2440 will remain intact as long as GBP stays above 1.2040 (no change in ‘strong support’ level).”