GBP/USD bullish on a close above 1.3000 – UOB

FX Strategists at UOB Group noted Cable’s stance to shift to bullish on a daily close above 1.3000.

Key Quotes

“We underestimated GBP strength as the strong 1.2965 level did not pose much of a resistance (GBP hit a high of 1.2984 last Friday). The strong daily closing suggests further upward pressure but while a move above 1.3000 would not be surprising, a sustained up-move seems unlikely (next resistance at 1.3025)”.

“The rapid swing higher from last Thursday (04 May) low of 1.2831 came as a surprise. While the pressure has quickly shifted to the upside, only a daily closing above 1.3000 would indicate that GBP has moved into a bullish phase again. In the meanwhile, this pair is expected to stay underpinned with solid support at 1.2880”.