GBP/USD immediate hurdle aligns at 1.3270 – UOB

Cable is seen testing the 1.3270 area in the near term, suggested FX Strategists at UOB Group.

Key Quotes

“The sudden pick-up in upward momentum was unexpected as GBP easily exceeded the target indicated at 1.3180 yesterday (overnight high of 1.3223). The rally appears to have scope to extend further but in view of the overbought conditions, any up-move would likely be at a slower pace and limited to a test of 1.3245 (next resistance at 1.3270). On the downside, support is at 1.3170 followed by 1.3140. The low of 1.3097 registered early yesterday is unlikely to come into the picture anytime soon”.

“GBP closed at 1.3215 in NY, well above the key 1.3150 level indicated in recent updates. The strong close has shifted the outlook for this pair to bullish. The immediate target is at 1.3270 followed by 1.3340. Those looking to turn long may like to wait for a dip to 1.3140/45 to enter long. Stop-loss is placed at 1.3095”.