GBP/USD stays bullish, now targets 1.2950 – UOB

In view of the recent price action, FX Strategists at UOB Group noted Cable could extend the upside to the mid-1.2900s in the next weeks.

Key Quotes

“GBP sliced through successive major resistances with ease to hit an overnight high of 1.2908. The rally is clearly in extreme overbought conditions but with no signs of weakness just yet, further bullish extension is not ruled out. That said, 1.2950 is a major weekly trend-line resistance and is unlikely to yield so easily”.

“While we have been anticipating a break above 1.2615 since late last Thursday, the more than 2% rally yesterday was unexpected. The rapid pace of gain appears to be untenable even though there is room for the current GBP strength to extend further towards 1.2950 (overnight high has been 1.2908). Only a move back below 1.2660 would indicate that a temporary top is in place”.