GBP/USD scope for a test of 1.3170 – UOB

The research team at UOB Group suggested GBP/USD could reach the 1.3170 area in the next weeks.

Key Quotes

“GBP spiked to a high of 1.3087 after the release of FOMC minutes but the up-move was not sustained. Despite the rapid pull-back, the undertone is still positive”.

“The outlook for GBP shifted from bearish to neutral yesterday and there is no change to the view”.

“The current movement is viewed as a corrective rebound which has scope to extend higher to 1.3170. At this stage, a sustained move above this level is not expected. The current positive undertone looks likely to persist for the next several days unless there is a move back below 1.2920”.