GBP/USD keeps the bullish stance short term – UOB

In opinion of FX Strategists at UOB Group, Cable’s outlook remains bullish and a clear of 1.3570 should allow for a test of the 1.3660 region.

Key Quotes

24-hour view: “GBP traded between 1.3415 and 1.3538 yesterday before closing unchanged for the day (range was wider than our expected 1.3425/1.3520 consolidation range). Despite the relatively choppy price action, indicators are mostly ‘flat’. From here, GBP is expected to continue to trade sideways, likely to hold within yesterday’s range”.

Next 1-3 weeks: “GBP touched a high of 1.3550 last Friday and the strong 1.3570 resistance remains unchallenged. As highlighted in recent updates, a clear break of 1.3570 would shift the focus towards the year-to-date high of 1.3660. This scenario would not be surprising even though overbought shorter-term conditions could lead to a few days of consolidation first. Only a move back below 1.3390 (‘stop-loss’ level unchanged) would indicate that a top is in place”.