GBP/USD now looks to 1.3450 – UOB
Cable stays firm and is currently expected to test the mid-1.3400s in the following weeks, proposed FX Strategists at UOB Group.
24-hour see: "The solid flood in GBP last Friday that prompted an incredible increase of +1.15% (1.3350) came as a shock. Further gains are not precluded however overbought conditions recommend a more slow pace of advance and the obstruction at 1.3410 could be far off (next opposition is at 1.3450). Backing is at 1.3300 followed by 1.3260."
Next 1-3 weeks: "We noted last Friday (28 Aug, spot at 1.3210) that GBP 'could keep on exchanging an uneven way between the two significant degrees of 1.3000 and 1.3300'. We included, 'just an away from of both of the two levels would show the beginning of a more continued directional move'. All things considered, we didn't envision the way GBP vaulted to a high of 1.3357 before shutting pointedly higher at 1.3350 (+1.15%). While the development has all the earmarks of being running in front of itself, vigorous force shows further GBP quality is likely. From here, GBP could fortify towards 1.3450, but likely at a more slow pace. All in, the current positive stage in GBP is esteemed as flawless as long as it holds over the 'solid help' level of 1.3220."