Back
29 Jul 2016
GBP/USD bullish above 1.3070 – UOB
The research team at UOB Group expects Cable to clinch extra gains above 1.3320 in the next weeks.
Key Quotes
“Instead of extending higher as expected, GBP dropped sharply after touching a high of 1.3250. The rapid drop to an overnight low of 1.3118 appears to be overextended and further sustained weakness is not expected”.
“While shorter-term upward momentum has improved, a sustained up-move in GBP is likely only if there is a clear break above the strong 1.3320 resistance. At this stage, the odds for a break of this level are not high even though it has increased. Overall, the positive undertone would continue to improve as long as GBP stays above 1.3070”.