GBP/USD a test of 1.2480 remains on the cards – UOB

In view of FX Strategists at UOB Group, the current upside momentum could push Cable to the 1.2480 area.

Key Quotes

“GBP traded mostly sideways yesterday but the strong daily closing suggests that the undertone has improved. That said, any up-move from here is expected to face stiff resistance near 1.2375 and a move above the 1.2415 high seen earlier this week seems unlikely”.

“There is not much to add as we continue to hold on to the view that the current GBP strength has room to extend higher towards 1.2480. This level is a strong resistance and a clear break above would indicate that GBP could move much higher in the coming days/weeks. All in, GBP is expected to stay underpinned as long as 1.2250 is intact”.