GBP/USD now faces upside risks – UOB

Cable could advance to the 1.3960 level in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for GBP to ‘test 1.3930’ did not materialize as it traded within a 1.3839/1.3912 range. We continue see room for GBP to edge upwards but a clear break of 1.3930 is unlikely (minor resistance is at 1.3915). Support is at 1.3850 followed by 1.3835.”

Next 1-3 weeks: “We continue to hold the same view from yesterday (12 Jul, spot at 1.3895). As highlighted, the strong surge in GBP last Friday has shifted the risk to the upside and GBP could advance to 1.3960. At this stage, prospect for a sustained rise above this level is not high. The upside risk is deemed intact as long as GBP does not move below the ‘strong support’ level at 1.3800.”