GBP/USD stays firm and targets 1.2800 – UOB

Cable keeps the solid momentum unchanged and could attempt a breakout of the 1.2800 mark in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for GBP ‘to continue to strengthen’ was incorrect as it dropped to 1.2644 before snapping back up. The rapid swings have resulted in a mixed outlook and for today, GBP is expected trade sideways within a 1.2670/1.2770 range.”

Next 1-3 weeks: “We turned positive in GBP yesterday (21 Jul, spot at 1.2670) and held the view that GBP ‘is likely to trade with an upward bias’. We added, ‘a break of 1.2740 could lead to a rapid rise to the June’s peak at 1.2812’. Our expectation was not wrong as GBP soared to an overnight high of 1.2768. Further GBP strength is likely and from here, the focus is at 1.2812 and looking forward, the next resistance is at 1.2860. On the downside, the ‘strong support’ level has moved higher to 1.2630 from yesterday’s level of 1.2560.”