GBP/USD bullish, probable surpass of 1.3655 – UOB

Cable’s bullish outlook remains firm, allowing a potential test of the mid-1.3600s in the near term, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “While GBP ‘retested’ last Friday’s peak of 1.3615/20 as expected, the subsequent sharp and rapid drop from a high of 1.3618 was unexpected. A temporary top is likely in place and the current movement is viewed as the early stages of a consolidation phase. In other words, GBP is expected to trade sideways from here, likely within a 1.3460/1.3560 range”.

Next 1-3 weeks: “The sharp pull-back yesterday is viewed as part of a short-term consolidation phase that may last for a couple of days. Until the stop-loss at 1.3440 is taken out, another push higher to take out 1.3655 is not ruled out just yet”.