GBP/USD gains appear limited – UOB

Analysts at UOB Group see limited room for further upside in GBP/USD following the recent rally.

Key Quotes

“The 1.4665 resistance was easily taken out as GBP continues with its relentless rally. While further up-move is not ruled out, severely overbought indicators suggest a slower pace of advance and the 1.4770 high seen in May could temporarily cap the current GBP strength”.

“While GBP closed at 1.4675, just above the major 1.4665 resistance, we are not convinced that the current rally could be sustained”.

“Looking back, GBP took about six weeks to move from 1.4770 (high in early May) to a low of 1.4013 last Thursday but in three short days, it recovered almost all of its loss”

“Volatility is expected to remain elevated and it may more prudent to focus on the shorter-term move”.