GBP/USD keeps the bullish mood near term – UOB

Cable’s upside momentum remains intact for the time being, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “In line with expectation, GBP retested last Friday’s high of 1.3223. The failure to move clearly above this level is not surprising and the quick pullback from a high of 1.3222 suggests that a temporary top is in place. The current movement is viewed as part of a consolidation phase even though the immediate bias is for GBP to probe the bottom of the expected 1.3130/1.3210 consolidation range”.

Next 1-3: “We shifted to a bullish stance last Friday and there is no change to the view. The target remains unchanged at 1.3265 but this is a rather strong level and could be out of reach for the next few days. On the downside, the stop-loss level is adjusted higher to 1.3050 from 1.3000. Positioning wise, the buy level suggested at 1.3065 was not met and it looks like we have missed the ideal buying opportunity”.