GBP/USD faces strong resistance at 1.3480 – UOB

According to the research team at UOB Group, occasional bullish attempts in Cable should find strong resistance around 1.3480.

Key Quotes

“Against our expectation, GBP recovered without retesting last Friday’s 1.3130/35 low. The outlook is mixed from here and consolidation seems likely for today albeit with a bias for probe higher towards 1.3350”.

“The recent pick-up in short-term upward momentum has fizzled out. Last week’s 1.3480 high is acting as a very strong resistance now and a sustained move above this level is unlikely”.

“To put it another way, while the outlook for next week or so is still viewed as neutral, the short-term upward pressure has eased and GBP is more likely to trade sideways instead of extending higher. Expected range from here, 1.3100/1.3500”.