GBP/USD still sees a test of 1.3020 – UOB

FX Strategists at UOB Group still believe Cable could re-test the 1.3020 area in the next 1-3 weeks.

Key Quotes

24-hour view: “We indicated yesterday the rebound in GBP “has scope to extend higher but a move beyond 1.2980 is unlikely”. In line with expectation, GBP eased off quickly after touching a high of 1.2978. Upward momentum has eased and a temporary short-term top is likely in place. The current movement is viewed as part of a consolidation phase and GBP is expected to trade sideways, likely within a lower range of 1.2880/1.2960”.

Next 1-3 weeks: “We continue to hold the view that GBP has moved into a neutral phase. The strong rebound off the strong 1.2775 support last week has scope to extend higher to 1.3020. At this stage, a sustained move above this level is not expected. On the downside, only a move back below 1.2840 (key short-term support moved higher from 1.2810) would indicate that the immediate upward pressure has eased”.