GBP/USD bullish on a close above 1.3150 – UOB

Cable’s outlook remains neutral in the near term, although a close above 1.3150 should shift it to bullish, according to FX Strategists at UOB Group.

Key Quotes

“Expectation for a temporary top yesterday was clearly wrong as GBP surged and tested last week’s top of 1.3126 (overnight high of 1.3125). The rally appears incomplete but 1.3150 is a major level and is expected to offer solid resistance (ahead of 1.3200). Support is at 1.3085 but only a move back below 1.3055 would indicate that the upward pressure has eased”.

“GBP moved easily above our expected 1.2920/1.3100 consolidation range and tested last week’s top at 1.3126 (high has been 1.3125). Upward momentum has improved considerably but we prefer to wait for a NY closing above 1.3150 before shifting to a bullish stance. This scenario appears likely as long as GBP can hold above 1.3030 within these couple of days. A shift to a bullish phase would have an immediate target of 1.3250”.