Further upside could now push GBP/USD to the 1.2700 region in the next weeks, noted FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “GBP popped to a high of 1.2667 during Asian hours last Friday before trading sideways for the rest of the session. There is barely any improvement in upward momentum and GBP is likely to trade sideways for today, expected to be within a range of 1.2580/1.2665.”

Next 1-3 weeks: “In our latest update from last Thursday (27 May, spot at 1.2580), we held the view that GBP has to close above 1.2600 before a sustained advance is likely. We indicated the next resistance above 1.2600 is at 1.2640. GBP rose to 1.2667 last Friday before closing at 1.2628 (+0.16%). Despite the advance, upward momentum has not improved by much. That said, the risk is on the upside towards 1.2700. Overall, only a break of 1.2540 (‘strong support’ level) would indicate that the upside risk has dissipated.”