GBP/USD bullish on a close above 1.3150 – UOB

FX Strategists at UOB Group remain neutral on Cable, although a daily close above 1.3150 should shift the outlook to bullish in the near term.

Key Quotes

“Instead of trading sideways as expected, GBP edged above the strong 1.3150 resistance to touch a high of 1.3152. While upward momentum is not that strong at this stage, extension higher towards 1.3180 seems likely (next resistance is at 1.3200). On the downside, support is at 1.3115 followed by 1.3070”.

“GBP closed on positive note last Friday (at 1.3135) but did not meet the condition needed for a shift to a bullish phase (close above 1.3150). The undertone has improved and as long as 1.3050 is not taken out within these 1 to 2 days, a shift to a bullish phase would not be surprising (and would have an immediate target of 1.3270)”.