GBP/USD bullish on a breakout of 1.3030 – UOB

Cable’s outlook should shift to bullish from neutral on a close above 1.3030 in the short term, suggested FX Strategists at UOB Group.

Key Quotes

“We indicated yesterday that the recovery in GBP “has scope to extend higher but a sustained move above 1.2980 is not expected”. GBP touched a high of 1.2983 before easing off and is currently holding just below this level. From here, the improved undertone suggests that a move above 1.2980 would not be surprising but any up-move is expected to be slow and grinding. Resistance is at 1.3000 followed closely by last week’s peak at 1.3030 and the year-to-date high near 1.3045/50”.

“The recovery in GBP is stronger and happened sooner than expected. However, as indicated in recent updates, GBP has to break clearly above 1.3030 to indicate that it has moved into a bullish phase again. The odds for such a move do not appear to be high at this stage but would continue to improve as long as GBP can hold above 1.2890 in the next few days”.