GBP/USD bullish now, targets 1.3265 – UOB

Cable’s outlook has shifted to bullish from neutral and could now target the 1.3260 area, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for GBP to trade sideways was wrong as it surged and exceeded the strong 1.3100 resistance (high of 1.3116). The up move appears to be running ahead of itself and while a test of 1.3130 would not be surprising, a sustained move above this level is not expected, at least for not for today (next resistance is at 1.3165). On the downside, on a move back below 1.3045 would indicate that a short-term top is in place (minor support at 1.3065)”.

Next 1-3 weeks: “GBP finally cleared 1.3100 yesterday and hit a high of 1.3119 before closing at 1.3103 (we would have preferred a stronger daily closing). That said, it looks like the recent neutral outlook has shifted to bullish. The target is at the year-to-date high of 1.3265 even though 1.3200 is expected to offer solid resistance. Support is at 1.3065 but only a move back below 1.3000 (stop-loss)