GBP/USD still eyes a test of the mid-1.3000s – UOB

Cable’s outlook remains bullish for the time being, still targeting the area around 1.3050 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

“The target indicated at 1.2985 was easily exceeded as GBP soared to a high of 1.3016. Upward momentum remains strong (albeit overbought) and from here, the next level to focus on is at the year-to-date high of 1.3045/50 (next resistance is further up at 1.3130). Support is at 1.2960 followed by 1.2925”.

“We just turned bullish GBP yesterday and there is no change to the view. The pace of advance is more rapid than expected and the target at 1.3045/50 appears to be within reach. Above this level, the focus would shift to 1.3160. The suggested buy level at 1.2905/10 was not reached. We are not inclined to ‘chase’ the rally at current level. That said, confirmation of a top is only upon a move back below 1.2925 (adjusted higher from 1.2840)”.