GBP/USD could start a positive phase above 1.2763 – UOB

A close above 1.2763 could trigger a positive phase in GBP/USD, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Last Friday, we were of the view the “advance in GBP could edge above 1.2730 but the month-to-date high of 1.2763 is likely out of reach”. GBP subsequently rose to 1.2748 before closing right at the high. Upward momentum has improved and for today, a move above 1.2763 would not be surprising but the next resistance at 1.2800 may not yield so easily. Support is at 1.2715 followed by 1.2685”.

Next 1-3 weeks: “Our narrative from last Thursday (20 Jun, spot at 1.2655) wherein the “uptick in momentum suggests GBP could test the month-to-date high at 1.2763” appears to be on track as GBP touched 1.2748 last Friday (21 Jun). While it is early days yet, there are some nascent signs that GBP could have made a short-term at 1.2507 last week. Meanwhile, GBP has to register a NY closing above 1.2763 in order to indicate the start of a ‘positive phase’ that could potentially lead to a rise towards 1.2850. On the downside, only a move below 1.2650 would indicate that the current upward pressure has eased”.