GBP/USD bullish above 1.2615 – UOB

In opinion of FX Strategists at UOB Group, Cable’s outlook should shift to bullish on a close above 1.2615.

Key Quotes

“Instead of moving higher as expected, GBP dropped to an overnight low of 1.2466. While the down-move appears to have scope to extend lower, patchy momentum suggests that any weakness is unlikely to break clearly below the major 1.2435 support (minor support at 1.2455)”.

“The pull-back yesterday appears to be corrective and as long as 1.2435 is intact, the undertone for GBP is still positive. That said, it is early days yet and GBP has to close above last week’s 1.2615 high to indicate that a bullish phase has started. A move below 1.2435 would suggest this pair has moved into consolidation phase”.