GBP/USD sticks to the bullish view – UOB

FX Strategists at UOB Group remain bullish on Cable, noting that it could attempt a test of the 1.3200 mark in the short term.

Key Quotes

“Despite the strong daily closing last Friday, GBP failed to extend its gain and dropped quickly from a high of 1.3111. The rapid pull-back from the high appears to be running ahead of itself and further sustained weakness is not expected from here. GBP is more likely to trade sideways at these higher levels, likely between 1.3025 and 1.3105”.

“We just turned bullish yesterday and there is no change to the view. There is a strong resistance at 1.3150 and a break above this level would shift the focus to the target at 1.3200. That said, overbought shorter-term conditions could lead to a couple of days of consolidation first. The suggested buy level of 1.3075 was met. In view of the expected short-term consolidation, stop-loss is adjusted slightly lower to 1.3000 from 1.3020”.