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Forex pairs in this Article » GBP/USD (Barcelona) - GBP/USD is well positioned to extend its recent gains, with scope for a fresh upside leg to break through 1.6260, according to UBS Technical Strategists.

Key Quotes

"After testing the support marked by the 38% retracement of the Aug 28-Oct 1 advance at 1.5943 multiple times since last week, the pair rallied sharply this morning. As a result, Stochastics are threatening to cross higher within a bullish trend, reflected by the MACD above its zero line and by the pattern of higher highs/lows."

"The other bullish development to watch for over the next few sessions will be the daily MACD crossing above its moving average, further substantiate the uptrend."

"On confirmation of the momentum signal, there's scope for a fresh upside leg to break through 1.6260, the Oct 1 high then 1.6381, the January high, then eventually to 1.6747, the April 2011 high."

"We will recommend a new long on a close above 1.6055, which will confirm the momentum signal. Our target would be set at 1.6725, with a stop initially placed at 1.5875, just below Wednesday's low."
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