The latest price action in the Pound Sterling (GBP) market suggests a potential rise towards and a possible breakthrough above the 2023 peak of 1.3144, according to experts at UOB Group. In a recent analysis, FX strategists Quek Ser Leang and Peter Chia point to bullish momentum in the GBP market.
GBP Bulls Aim for New Highs
Looking at the short-term view, the analysts state, “GBP surged two days ago, with a slight pullback yesterday. While GBP may continue its upward trajectory, breaking above last year’s high of 1.3144 may be a challenge.” The currency pair touched a high of 1.3130 before closing at 1.3093, indicating a potential range-bound trading day between 1.3065 and 1.3125.
On a longer-term outlook of 1-3 weeks, the analysts maintain their bullish stance, stating, “The recent price action suggests GBP could climb towards and surpass the 2023 peak of 1.3144. The key support level at 1.2970 needs to hold to sustain the upward momentum. Beyond 1.3144, the next target to watch is 1.3200.”
Analysis and Implications
For investors and traders, the potential breakout above the 1.3144 level in GBP could signal further strength in the currency. A breach of this key resistance level could open up new opportunities for long positions in the market. However, it is essential to monitor the support level at 1.2970 to assess the sustainability of the uptrend.
Overall, the outlook for GBP remains positive, with the possibility of reaching new highs in the coming weeks. Traders should stay vigilant and use risk management strategies to navigate any potential market fluctuations.