GBP/USD extra upside to 1.4280 lost traction – UOB

In view of FX Strategists at UOB Group, the potential test of the 1.4280 area appears to have lost momentum as of late.

Key Quotes

24-hour view: “GBP traded between 1.4022 and 1.4089 yesterday, relatively close to our expected 1.4020/1.4085 range. While the consolidation phase still appears intact, the upside seems to more vulnerable and a break above 1.4085 could lead to a quick pop higher to 1.4125. At this stage, a clear break above this level is not expected. Support is at 1.4040 followed by 1.4020”.

Next 1-3 weeks: “There is not much to add as we continue to detect a mild positive undertone in GBP. While the odds have diminished, another attempt to move higher to test the major 1.4280 resistance is not ruled out just yet. Only a clear break below 1.4000 would indicate that the current mild upward pressure has eased. That said, GBP has to move and stay above 1.4100 soon or the odds for a move to 1.4280 would diminish further”.