GBP/USD still appears overbought – UOB

According to FX Strategists at UOB Group, Cable still remains in overbought territory and could attempt a test of 1.2950 in the neart term.

Key Quotes

“GBP eased off quickly after spiking to a high of 1.2910 early yesterday. Upward momentum is showing signs of waning and this pair has to quickly reclaim 1.2860 or the risk of a short-term top would continue to grow”.

“In other words, while we continue to expect the “UK election” rally to extend to 1.2950, this has to happen quickly as further consolidation at these higher levels would lead to a rapid loss in momentum. Stop-loss for the bullish view is unchanged at 1.2700”.