GBP/USD scope for a test of 1.2790 – UOB

In view of FX Strategists at UOB Group, Cable’s upside momentum could push towards the 1.2790 area in the next weeks.

Key Quotes

“Expectation for a move below the strong 1.2635/40 support was wrong as GBP rebounded from a low of 1.2643. While the rebound appears to be ‘corrective’ in nature, there is scope for a push higher towards 1.2790. However, the next resistance at 1.2820 is unlikely to come into the picture for now. Support is at 1.2720 but only a move back below 1.2680 would indicate that the current mild upward pressure has eased”.

“We just shifted to a bearish stance yesterday and there is no change to the view. The ‘better selling levels’ suggested at 1.2735/40 was exceeded as GBP hit an overnight high of 1.2757. The immediate target remains at 1.2560 and stop-loss is unchanged at 1.2820”.