The British Pound (GBP) may continue its upward trajectory, but it currently lacks the momentum needed to break through the significant resistance level of 1.3320, according to UOB Group FX strategists Quek Ser Leang and Lee Sue Ann.
Short-Term Outlook: Bulls May Fall Short of Major Resistance
In the short term, the GBP has shown unexpected strength, reaching a new 2.5-year high of 1.3269, surpassing expectations of range-bound trading. While the rapid momentum suggests further gains are possible, the GBP may struggle to breach the key resistance at 1.3320, with another resistance level at 1.3295. To sustain this momentum, it is crucial that the GBP does not fall below 1.3215, with minor support at 1.3235.
Medium-Term Outlook: Focus Remains on 1.3320
Over the next 1-3 weeks, the key level to watch remains 1.3320. Following the Pound’s sharp rise last Friday, UOB strategists reaffirmed on Monday that the strong momentum could push GBP higher. However, a breach below 1.3145—previously set at 1.3105 as the “strong support” level—would signal that the current bullish trend has run its course.
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