GBP/USD rebound could extend to 1.3420 – UOB

Analysts at UOB Group have suggested the likeliness of GBP/USD to test levels above the 1.3400 handle.

Key Quotes

“While we were of the view that the shorter-term recovery could extend higher to 1.3320, the ease of which this strong resistance was taken out was unexpected”.

“From here, the undertone is clearly positive and the current rebound has room to extend further to 1.3420”.

“A clear break above this level would greatly increase the odds for a move to the post-Brexit high of 1.3600 (with strong intervening resistance at 1.3480). In the next few days, GBP is expected to stay underpinned with solid support at 1.3200”.