GBP/USD bullish, focus on 1.3570 – UOB
According to FX Strategists at UOB Group, Cable’s outlook remains bullish and a surpass of 1.3570 would allow a test of the 1.3660 area.
24-hour view: “While we expected a higher GBP yesterday, the strong rally that easily took out several strong resistances came as a surprise. The rally is over-extended but there is some ‘juice’ left for GBP to edge above the overnight high of 1.3549. The next resistance is at 1.3570 and this level may not be easy to break this time round. On the downside, only a move below 1.3460 would indicate that a temporary top is in place (minor support is at 1.3490)”.
Next 1-3 weeks: “We shifted to a bullish stance yesterday but expected 1.3500 to offer solid resistance. The ease of which this level was taken out came as a surprise. From here, the next resistance is at 1.3570 and clear break of this level would shift the focus towards the year-to-date high of 1.3660. ‘Stop-loss’ is adjusted higher to 1.3390 from 1.3320”.