GBP/USD still targets 1.2650 – UOB

Cable still remains poised for a test of the mid-1.2600s, according to FZX Strategists at UOB Group.

Key Quotes

“GBP broke below several strong supports but rebounded strongly after touching a low of 1.2419. The recovery appears to have enough momentum to move above the strong 1.2570 resistance but the major level of 1.2650 is likely out of reach for now”.

“We just adopted a bullish GBP stance yesterday and there is no change to the view. The immediate target is still at 1.2650; a clear break above this level would shift the focus towards 1.2730. Stop loss remains unchanged at 1.2355 for now but the 1.2415/20 low seen yesterday is likely strong enough to hold any short-term pull-back (stop-loss to shift higher only upon a move above 1.2570)”.