GBP/USD looks ready to re-test 1.3910 – UOB

In opinion of FX Strategists at UOB Group, Cable could be headed towards the 1.390 mark and above in the next weeks.

Key Quotes

24-hour view: Last Friday, we highlighted that ‘solid upward momentum suggests that the current advance in GBP is likely to break 1.3850 and head towards 1.3885’. We added, ‘the major resistance at 1.3910 is likely out of reach’. Our view was not wrong as GBP soared to 1.3891 before pulling back. Deeply overbought conditions indicate that the current GBP strength is ready to take a breather. In other words, GBP is likely to trade sideways for today, expected to be between 1.3825 and 1.3890.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (03 Sep, spot at 1.3835). As highlighted, vastly improved momentum suggests that GBP is ready to head higher to 1.3910. GBP subsequently soared to 1.3891 before easing off. The current positive outlook is deemed intact as long as GBP does not move below 1.3790 (‘strong support’ level was at 1.3760 last Friday).”