GBP/USD still targets 1.3270 – UOB

In view of FX Strategists at UOB Group, Cable’s stance remains bullish with the potential target at 1.3270 in the next weeks.

Key Quotes

“Against our expectation, EUR managed to edge above the strong 1.3245 resistance to hit a fresh high of 1.3250. The positive undertone suggests further upside pressure but any extension higher is likely to be slow and grinding. From here, as long as 1.3190 is intact, GBP is expected to drift higher towards 1.3270. At this stage, a sustained move above this level is not expected (next resistance is at 1.3300)”.

“There is hardly any significant pull-back as GBP continues to advance and hit a fresh high of 1.3250. The bullish target of 1.3270 that was indicated two days ago (01 Aug) appears to be within reach. A break of this level would shift the focus to 1.3345. Stop-loss is adjusted higher to 1.3130 from 1.3095. Positioning wise, the entry level suggested at 1.3140/45 two days is not met and it appears that the buying opportunity has been missed”.