GBP/USD bullish above 1.2610/15 – UOB
|According to FX Strategists to UOB Group, the pair’s outlook should turn to bullish on a close above 1.2610/15.
Key Quotes
“The sudden acceleration higher was unexpected as GBP surged and closed at 1.2548, not far below the day’s high at 1.2561. Upward momentum remains strong and there is room for the current rally to extend further towards 1.2610/15. That said, the pace of any further up-move would likely be slower. Support is at 1.2515 followed by 1.2470. The low of 1.2428 seen early yesterday is not expected to come into the picture”.
“The sharp rise and strong daily closing yesterday came as a surprise. While the overnight high of 1.2561 is still within our expected 1.2400/1.2580 consolidation range, the undertone has improved considerably. The immediate pressure is on the upside but GBP has to clear the major 1.2610/15 resistance to indicate that it has started on a sustained upmove (with an immediate target of 1.2705). Only a move back below 1.2470 would indicate the positive undertone has eased”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.