Cable’s upside momentum could revisit the 1.2580 zone in the next weeks, suggested FX Strategists at UOB Group Quek Ser Leang and Peter Chia.

Key Quotes

24-hour view: “GBP closed at 1.2496 last Friday (+0.20%) before edging above 1.2500 during early Asian hours. While upward momentum has not improved by much, there is scope for GBP to edge higher even though the major resistance at 1.2580 is unlikely to come into the picture (there is another resistance at 1.2545). Support is at 1.2475 followed by 1.2450.”

Next 1-3 weeks: “Despite moving above the resistance at 1.2500, upward momentum in GBP has not improved by much. However, GBP could edge higher to 1.2580. Barring a surge in momentum, a sustained rise above 1.2580 is unlikely. On the downside, a break 1.2400 would indicate that the current mild upward pressure has eased.”