GBP/USD could test 1.4180 – UOB

Cable’s upside seems to have room to extend to the 1.4180 region, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “GBP dipped to a low of 1.3916 first before staging a strong rebound and hit the ‘target’ highlighted at 1.4030 yesterday (overnight high of 1.4030). Despite the choppy price action, the undertone remains positive and there is scope for further GBP strength towards 1.4055 (the 1.4030 high is acting a minor resistance). Support is at 1.3955 followed by 1.3915”.

Next 1-3 weeks: “As highlighted, a break above 1.4000 would suggest that there is room for further GBP strength towards 1.4100 followed by 1.4180. On the downside, the ‘stop-loss’ level remains unchanged at 1.3850 even though on a shorter-term note, 1.3915 is already a strong level. A break of 1.3850 would indicate that the bullish phase that started last Monday (15 Jan, spot at 1.3735) has ended”.