The continuation of the upside momentum in GBPUSD seems to favour a potential visit to the 1.1910 level in the next few weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the deeply overbought rally in GBP from Friday appears to be overdone and GBP is unlikely to advance much further’. We expected GBP to ‘trade between 1.1725 and 1.1860’. GBP subsequently traded within a narrower range than expected (1.1714/1.1829). The current movement is likely part of an ongoing consolidation and we expect GBP to trade between 1.1700 and 1.1825 today.”

Next 1-3 weeks: “Our update from yesterday (14 Nov, spot at 1.1795) still stands. As highlighted, the solid upward momentum from late last week suggests there is room for the rally in GBP to extend to 1.1910, possibly 1.2000. The upside risk is intact as long as GBP does not break below the ‘strong support’ level of 1.1560 (no change in level from yesterday).”