According to FX Strategists at UOB Group, GBP/USD could extend the upside further north of 1.3220 in the next weeks.

Key Quotes

24-hour view: “Our expectations for GBP to ‘test the major resistance at 1.3220’ did not materialize as it traded between 1.3111 and 1.3197. The price actions are likely part of a consolidation and GBP is likely to trade sideways for today, expected to be within a range of 1.3115/1.3205.”

Next 1-3 weeks: “Last Thursday (17 Mar, spot at 1.3150), we held the view that the rebound in GBP has scope to extend to 1.3220. After GBP popped to a high of 1.3211, we highlighted on Friday that “the chance for a sustained rise above 1.3220 has increased”. There is no change in our view for now. Only a breach of 1.3070 (no change in ‘strong support’ level from last Friday) would indicate that GBP is not ready to head towards 1.3220.”