GBP/USD: break of 1.3060 needed to trigger bearish momentum - Lloyds

According to analysts from Lloyds Bank, in the GBP/USD pair there is scope to see a re-test of 1.35 range highs while to the downside, 1.3220 is likely to be first notable support.

Key Quotes:

“GBPUSD rallied strongly yesterday, after better than expected Construction PMI bucked the trend of weak post-EU referendum data releases. After moving through resistance at 1.3315, it extended to a high above 1.3360.”

“There is scope, given the relatively extreme short positioning, to see a re-test of 1.35 range highs. 1.3220 is likely to be first notable support. To trigger bearish momentum, the 1.3060 level needs to be broken. If that occurs, the move is likely to accelerate, with 1.2945 and 1.2798 providing further support.”