GBP/USD bullish, 1.2950 still on sight – UOB

FX Strategists at UOB Group reiterated the bullish stance on Cable, while a test of the mid-1.2900 still remains on the cards.

Key Quotes

“GBP briefly surged above last week’s 1.2908 peak early this morning (high of 1.2910) before pulling back sharply and rapidly. While the undertone is generally positive, a clear break above 1.2910 seems unlikely for now”.

“GBP briefly edged above last week’s 1.2908 peak early this morning to touch a high of 1.2910. Despite the rapid pullback from the high, it is too early to expect a short-term top. There is still room for another push higher towards 1.2950 but we have to see such a move within these few days as a prolonged consolidation at these overbought levels would lead to a rapid loss in momentum. Stop-loss is adjusted higher to 1.2700 from 1.2660”.