GBP/USD shifted to bullish stance, eyes on 1.3370 – UOB

According to the research team at UOB Group, GBP/USD could reach the 1.3370 area in the next 1-3 weeks.

Key Quotes

“GBP soared to touch 1.3318, the highest level in 4 weeks. While upward momentum is very strong, the rally appears to be over-extended and the pace of any further gains would likely be slower and the strong 1.3370/75 resistance (high in early August) is unlikely to come under serious threat”.

“The sudden surge higher in GBP is clearly not expected. Strong upward momentum coupled with the breach of major resistances has shifted the outlook to bullish again. However, July’s peak of 1.3370/75 is another major resistance and this level may not be easy to crack. Support is at 1.3180 but only a move below 1.3130 would indicate that our bullish expectation is wrong”.