GBP/USD sticks to the bullish view – UOB

FX Strategists at UOB Group stay bullish on Cable, expecting a test of 1.3270 in the next 1-3 weeks.

Key Quotes

“We indicated yesterday that “in view of the overbought conditions, any up-move would likely be at a slower pace and limited to a test of 1.3245”. In line with expectation, GBP extended its gain but the up-move was thwarted by 1.3245 (overnight high was exactly 1.3245). The pull-back from the high amidst overbought conditions suggests a low risk of a clear break above 1.3245. That said, it is too early to expect a significant pull-back and this pair is more likely to trade sideways at these higher levels. Expected range for today; 1.3145/1.3235”.

“We just shifted to a bullish GBP stance yesterday and there is no change to view. The target and stop-loss remain unchanged at 1.3270 and 1.3095 respectively. Those looking to turn long may like to wait for a dip to 1.3140/45 to enter long”.