Analysts at UOB Group are observing a notable upward trend in the Pound Sterling (GBP), suggesting the potential for further increases up to the 1.3700 mark. Despite the recent gains placing GBP in an overbought territory, the momentum appears sufficient to target this resistance level in the near term, although the likelihood of exceeding the 1.3765 threshold has diminished.
In recent price action, the GBP achieved a high of 1.3621 two days ago. Subsequently, as the currency positioned at 1.3605, the analysts indicated that while additional strength seemed probable, the day’s upward movement might not breach 1.3660. They also highlighted significant resistance at 1.3630 and established support levels at 1.3585 and 1.3570.
The actual market performance, however, exceeded these expectations, with GBP reaching a high of 1.3670. While this advancement is notable, the current conditions suggest that maintaining a rise beyond 1.3700 is unlikely. The analysts project that the next significant resistance point would be at 1.3765, which also seems out of reach in the immediate future. On the downside, support is identified at 1.3635 and 1.3615, which traders will watch closely.
Looking further ahead, in a period spanning 1 to 3 weeks, analysts reflected on GBP’s trajectory post the previous week’s performance. They had noted a slight uptick in upward momentum, emphasizing the necessity for GBP to affirm a position above 1.3595 to enable further moves to the 1.3635 region. After achieving a close at 1.3599, their projections indicated that a push toward 1.3635 and potentially to 1.3660 was viable.
The market dynamics played out favorably, as GBP ultimately climbed to 1.3671 during a New York trading session. The outlook for GBP remains optimistic, with potential gains up to 1.3700 still in play; however, the analysts stress that a significant rise to 1.3765 seems less likely at this juncture. They caution that a break below 1.3575 would invalidate this bullish sentiment, illustrating the critical nature of support levels in guiding future market behavior.
