GBP/USD to extend its race higher towards the 1.1820 mark – OCBC

GBP/USD extends its run higher. The break past 1.1540 opens up further gains towards 1.1820 levels, analysts at OCBC Bank report.

Benefit of doubt

“For now, it appears that markets are giving Sunak-Hunt the benefit of doubt to come up with a plan to demonstrate that the new government is committed to fiscal discipline.”

“Next resistance at 1.1540 (61.8% fibo retracement of Aug high to Sep low). Decisive break out of those levels may see GBP extend gains towards 1.1820 levels.

“Support at 1.1390 (50DMA), 1.1310 (50% fibo) and 1.1220 (21 DMA).”