GBP/USD now eyes 1.3020 – UOB

According to FX Strategists at UOB Group, Cable’s outlook stays neutral and could test the 1.3020 area in the near term.

Key Quotes

24-hour view: “Against our expectation, GBP stayed below the 1.2946 peak seen early yesterday and eased off to a low of 1.2876. The subsequent quick rebound from the low appears to have scope to extend higher but upward momentum is patchy at best and any up-move is unlikely to move beyond 1.2980 (with 1.2945 acting as a strong ‘intervening’ resistance). Support is at 1.2900 followed by the low near 1.2875”.

Next 1-3 weeks: “We continue to hold the view that GBP has moved into a neutral phase. The strong rebound off the strong 1.2775 support last week has scope to extend higher to 1.3020. At this stage, a sustained move above this level is not expected. On the downside, only a move back below 1.2840 (key short-term support moved higher from 1.2810) would indicate that the immediate upward pressure has eased”.