GBP/USD: Door open for a move to 1.2900 – UOB

Cable has surpassed the 1.2800 mark and could now advance to the 1.2900 region in the near-term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted last Friday that ‘the underlying tone has firmed somewhat and from here, GBP could grind higher but the June’s peak at 1.2812 is likely out of reach for today’. Our view was not wrong as GBP rose to a high of 1.2803 before closing at 1.2795 (+0.42%). GBP extended its advance this morning and the rapid improvement in momentum suggests GBP could continue to strengthen towards 1.2860 (next resistance is at 1.2900). Support is at 1.2770 followed by 1.2740.”

Next 1-3 weeks: “Our latest narrative was from last Wednesday (22 Jul, spot at 1.2735) wherein ‘further GBP strength is likely; focus is at the June’s peak at 1.2812’. GBP subsequently traded sideways before soaring to a high of 1.2803 on Friday and closed on a firm note at 1.2795 (+0.42%). GBP cracked 1.2815 a while ago and from here, the next level to focus on is at 1.2860 followed by 1.2900. Overall, the current positive phase in GBP is deemed as intact as long 1.2700 (‘strong support’ level previously at 1.2630) is not taken out.”