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FX Strategists at UOB Group expect Cable to remain bid in the next weeks, with the immediate target at the key 1.30 handle.

Key Quotes

“While our view for GBP/USD to strengthen was correct, the pace and extent of the advance has exceeded our expectation by a wide margin as GBP/USD rallied over the past couple of weeks and touched a 5-month high of 1.2988″.

“The ease by which the 2-1/2 year declining trend line at 1.2720 was taken out coupled with strong and impulsive momentum suggests there is room for GBP/USD to advance further in the coming weeks. The next level to focus on above the round-number resistance of 1.3000 is at 1.3150, followed closely 1.3190. At 1.3150, GBP/USD would have retraced about 50% of the 2-1/2 -year decline from the April 2018 top of 1.4377 to the early September low of 1.1959. On the downside, support is at 1.2630 followed by 1.2400. The early September low of 1.1959 is but a distant memory and is highly unlikely to come into the picture anytime soon”.