GBP/USD bullish, upside could be losing steam – UOB

In view of FX Strategists at UOB Group, the outlook on Cable stays bullish although it could struggle to advance further north of 1.2532.

Key Quotes

“While GBP managed to make a ‘fresh high’ of 1.2532, the up-move is lacking in momentum. That said, the undertone is generally positive and GBP could continue to edge higher towards 1.2550. The next resistance at 1.2570 (last month’s high) is a strong level and is unlikely to yield so easily. Support is at 1.2465 but only a move back below 1.2430 would indicate that a temporary top is in place”.

“The overnight high of 1.2532 did not quite reach the partialprofit taking indicated previously at 1.2545/50. While the bullish phase that started on Monday is still intact, we believe the rally is running ahead of itself and continue to suggest taking partial profit at 1.2545/50. Stop-loss is adjusted higher to 1.2400 from 1.2340”.