FX Strategists at UOB Group remain bullish on Cable, noting that it could attempt a test of the 1.3200 mark in the short term.
“Despite the strong daily closing last Friday, GBP failed to extend its gain and dropped quickly from a high of 1.3111. The rapid pull-back from the high appears to be running ahead of itself and further sustained weakness is not expected from here. GBP is more likely to trade sideways at these higher levels, likely between 1.3025 and 1.3105”.
“We just turned bullish yesterday and there is no change to the view. There is a strong resistance at 1.3150 and a break above this level would shift the focus to the target at 1.3200. That said, overbought shorter-term conditions could lead to a couple of days of consolidation first. The suggested buy level of 1.3075 was met. In view of the expected short-term consolidation, stop-loss is adjusted slightly lower to 1.3000 from 1.3020”.
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 securities. 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 Forex 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.