Introduction:
The GBP/USD pair has been gaining momentum in recent weeks, and according to strategists at UOB Group, this trend is likely to continue. In this article, we will explore their views on why the GBP/USD pair is poised to rise further and potentially test the 1.2600 level.
The Focused Keyword: GBP/USD
Why GBP/USD is poised to challenge 1.2600 level:
According to Quek Ser Leang, a Markets Strategist at UOB Group, the recent upside momentum in the GBP/USD pair is likely to continue. She notes that the pair has been trading within a bullish trend channel since the beginning of April, and as long as it stays within this channel, the outlook for the pair remains positive.
In addition, Senior FX Strategist Peter Chia also believes that the pair could rise further in the coming weeks. He points to the fact that the pair has already broken above its 20-day moving average, which is a bullish signal. He also notes that the pair has strong support around the 1.2400 level, which should provide a cushion if there is any pullback in the near term.
Overall, both strategists are bullish on the GBP/USD pair and believe that it could rise further in the coming weeks.
Potential challenges to the GBP/USD rally:
While the outlook for the GBP/USD pair is positive, there are a few potential challenges that could derail its upward momentum. One such challenge is the ongoing COVID-19 pandemic, which continues to impact the global economy.
If the situation worsens and leads to renewed lockdowns or other restrictions, this could weigh on the GBP/USD pair. Another potential challenge is the upcoming UK elections, which could introduce some uncertainty into the market.
However, despite these challenges, UOB Group’s strategists remain optimistic about the GBP/USD pair’s prospects.
Conclusion:
In conclusion, the GBP/USD pair is poised to rise further in the coming weeks, according to UOB Group’s Quek Ser Leang and Peter Chia. The pair’s bullish trend channel and strong support around the 1.2400 level suggest that it could test the 1.2600 level in the near term. However, investors should also be aware of potential challenges that could impact the pair’s upward momentum, such as the ongoing COVID-19 pandemic and upcoming UK elections.
