GBP/USD scope for a test of 1.3355/60 – UOB

In light of the recent price action around Cable, FX Strategists at UOB Grouop have not ruled out a visit to the 1.3355/60 band in the near term.

Key Quotes

24-hour view: “GBP dipped to a low of 1.3213 before staging a strong and sharp rally to hit a high of 1.3324. The strong daily closing suggests further upward pressure towards 1.3355/60. The next resistance at 1.3400 is however, unlikely to come into the picture, at least not for today. Support is at 1.3290 followed by 1.3260”.

Next 1-3 weeks: “While we highlighted the ‘improved undertone’ for GBP yesterday, the strong up-move that edged above the top of our expected 1.3100/1.3320 consolidation range came as a surprise (overnight high of 1.3329). From here, a NY closing above 1.3350 would indicate the start of a bullish phase (with a target of 1.3450 followed by 1.3500). The odds for such a move are not high at this stage but would improve further as long as key short-term support at 1.3260 is intact”.