GBP/USD now targets 1.3250 – Commerzbank

In view of FX Strategists at UOB Group, Cable could attempt a visit to the upper end of the 1.3050-1.3250 range.

Key Quotes

24-hour view: “We highlighted yesterday that “there is room for GBP to probe the 1.3180 resistance” and added, “a clear break of this level is not expected”. The anticipated strength exceeded our expectation as GBP hit an overnight high of 1.3200. Upward momentum has improved further and the risk is still on the upside. However, 1.3250 is a rather strong resistance and this level is unlikely to yield so easily (there is another major resistance at 1.3300). On the downside, only a break back below 1.3135 would indicate that the current upward pressure has eased (minor support is at 1.3160)”.

Next 1-3 weeks: “There is not much to add to yesterday’s update. Underlying tone has however improved and the top of the expected 1.3050/1.3250 range is likely to be tested soon. At this stage, the prospect for a clear break of the next resistance at 1.3300 is not high”.