GBP/USD constructive above 1.2430 – UOB

In opinion of strategists at UOB Group, GBP/USD’s outlook remains constructive while above 1.2430.

Key Quotes

“Expectation for sideway trading was wrong as GBP surged above last week’s peak of 1.2558 (overnight high of 1.2585). Upward momentum remain strong and the current rally appears to have room to extend further to 1.2620/25, the high seen on the day of Brexit. On the downside, 1.2490 is likely strong enough to hold any short-term pull-back”.

“The undertone for GBP has improved considerably with the strong daily closing yesterday. We would turn bullish if there is a daily closing above 1.2550 (targeting a move above the 1.2625 high seen on the day of Brexit towards 1.2770). This pair is expected to stay supported unless there is move back below 1.2430”.

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