GBP/USD: 1.4570 appears on the horizon – UOB

FX Strategists at UOB Group noted Cable could attempt a visit to the 1.4570 region in the near term.

Key Quotes

24-hour view: “GBP rocketed past the 1.4055 ‘target’ yesterday to hit a post-Brexit high of 1.4266. While further GBP strength is still expected in the days ahead, the current rally is running ahead of itself and a move beyond 1.4300 seems unlikely for today (the 1.4266 high is already a rather strong resistance). Support is at 1.4170 but the strong level is closer to 1.4120”.

Next 1-3 weeks: “we highlighted the break of 1.4000 suggest further GBP strength towards 1.4100 and 1.4180. These two levels were exceeded in a ‘jiffy’ as GBP hit an overnight at of 1.4266. There is a minor resistance at 1.4300 and a break of this level would open up the way for a move to 1.4570. Overall, the bullish phase that started last Monday (15 Jan, spot at 1.3735) is still clearly intact until 1.4030 is taken out (‘stop-loss’ level adjusted markedly higher from 1.3850). On a shorter term note, 1.4120 is already a strong support”.