GBP/USD constructive above 1.2250 – UOB

Cable remains well poised for a test of the 1.2480 area in the near term, according to FX Strategists at UOB Group.

Key Quotes

“We noted last Friday that GBP is expected to stay underpinned as long as 1.2250 is intact”.

“GBP touched a low of 1.2262 but recovered strongly and we continue to expect the current short-term GBP strength to extend higher towards 1.2480”.

“In order to maintain the current positive momentum, any pull-back should not move back below 1.2260/65. Looking further ahead, a clear break above 1.2480 would indicate that GBP could move much higher in the coming weeks (next resistance at 1.2570)”.