GBP/USD could target 1.2770 – UOB

In view of strategists at UOB Group, Cable remains poised for a test of the 1.2770 area in the near term.

Key Quotes

“The 1.2625 target indicated last Friday was surpassed as GBP surged to a high of 1.2673. The subsequent sharp pullback from the high appears to have scope to extend lower to 1.2520 but a sustained move below this level is not expected”.

“As highlighted last Friday, a daily closing above 1.2550 would shift the neutral outlook for GBP to bullish. The upmove has been rather rapid and appears to be overextended especially from a shorter-term perspective. That said, as long 1.2400 is not taken out, there appears to be room for further extension to 1.2770”.

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