GBP/USD still bullish, could visit 1.2620/25 – UOB

GBP/USD could advance to the 1.2620/25 band in the next weeks, according to analysts at the FX Research team.

Key Quotes

“As highlighted last Friday, while further GBP strength seems likely, a sustained move above 1.2550 is not expected. GBP touched a high of 1.2558 before pulling-back quickly. The recent rally appears to be over-extended and this coupled with the sharp drop earlier this morning suggests that a temporary top is in place. The current pull-back appears to have scope to extend lower towards 1.2430 but for today, a sustained move below this level is not expected. Resistance is at 1.2510 ahead of the now rather strong level of 1.2555/60”.

“We turned bullish GBP last Friday and highlighted that despite overbought conditions, further extension to 1.2620/25 would not be surprising. GBP touched a high of 1.2558 on Friday before easing off. From here, as long as 1.2400 is intact (adjusted higher from 1.2350), another leg higher towards the 1.2625 target still seems likely. This is a major level and those who are long should consider booking some profit”.