Further appreciation of the Pound Sterling (GBP) is anticipated, despite approaching overbought levels, according to UOB Group FX strategists. The critical resistance level of 1.2860 is unlikely to be breached, though the risk for GBP remains on the upside.
24-Hour View:
Contrary to expectations of sideways trading last Friday, GBP rose above the solid resistance level at 1.2805, closing firmly at 1.2814 (+0.44%). While the rapid rise nears overbought territory, additional GBP strength cannot be ruled out. However, it is highly unlikely that the significant resistance at 1.2860 will be challenged. There is an intermediate resistance at 1.2840. Support is at 1.2785, and a breach of 1.2770 would indicate that GBP is not advancing further.
1-3 Weeks View:
Following a positive outlook on GBP since last Thursday (04 Jul, spot at 1.2745), UOB Group highlighted a solid resistance at 1.2805, ahead of last month’s high of 1.2860. Last Friday, GBP surpassed 1.2805, reaching a high of 1.2817. Consequently, the upside risk for GBP remains, with 1.2860 being the level to monitor. The upside potential remains intact as long as GBP stays above 1.2740 (with the ‘strong support’ level previously at 1.2685 last Friday).
Traders and investors should closely watch the 1.2860 level for potential movements, keeping an eye on support levels to gauge further advancements.
Related Topics:
