Further upside could now see GBP/USD advancing to the 1.2240 region in the near term, suggest FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “GBP jumped to a high of 1.2187 before closing on a strong note at 1.2158 (+1.06%). The rapid rise has room to extend but in view of the overbought conditions, the major resistance at 1.2240 is unlikely to come into the picture for now (there is another resistance at 1.2200). On the downside, a breach of 1.2110 (minor support is at 1.2135) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “GBP surged by 1.06% (NY close of 1.2158), its biggest 1-day gain in 6 weeks. The boost in upward momentum suggests GBP is likely to trade with an upward bias towards 1.2240. The upside risk is intact as long as GBP does not move below 1.2065 (‘strong support’ level) within these few days.”