GBP/USD bullish above 1.2370 – UOB

In view of FX Strategists at UOB Group, Cable’s outlook should turn bullish on a daily close above 1.2370.

Key Quotes

“We indicated yesterday that “in view of the overbought conditions, a sustained move above 1.2370 seems unlikely”. GBP hit an overnight high of 1.2377 before easing off. While clearly overbought, there appears to be room for another push higher towards 1.2400/05 before a deeper pull-back can be expected”.

“The overnight high of 1.2377 edged above the expected consolidation range of 1.2150/1.2370. This coupled with the strong daily closing suggest further upwards pressure and a daily closing above 1.2370 would indicate that GBP has moved into a bullish phase (with an immediate target of 1.2500). This scenario would not be surprising unless GBP ends below 1.2270 by end of today’s NY session”.