GBP/USD outlook shifted to bullish, eyes on 1.2620 – UOB

GBP/USD could advance to the 1.2620/25 band, according to the FX Research team at UOB Group.

Key Quotes

“While we anticipated a higher GBP, the pace and extent of the up-move was unexpected. The ease of which the major 1.2400 resistance was taken out led to a rapid rise to 1.2494. While overbought, the current up-move appears to have scope to move above the overnight high but at this stage, a sustained move above 1.2550 is unlikely. Support is at 1.2420”.

“GBP broke above successive strong resistances and registered the single largest daily gains in 3 months. While overbought, the up-move appears to have strength to extend further towards 1.2625, the high seen on the day of ‘flash crash’. In order to maintain the current momentum, any short-term pull-back should not move below 1.2350”.

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