According to UOB Group FX strategists Quek Ser Leang and Lee Sue Ann, there is potential for GBP to test the 1.3250 resistance level as long as 1.3160 is not breached.
Analyzing the GBP Movement
Looking at the 24-hour view, GBP unexpectedly soared last Friday, surpassing initial expectations of range trading. The rapid rise during NY trade suggests that there is room for GBP to test 1.3250, with a potential pause in the advance. To sustain momentum, GBP must stay above 1.3165, with minor support at 1.3185.
Examining the 1-3 weeks view, the focus is on the 1.3320 level. Following the recent surge in GBP, closing at its highest level since February 2022, the next target is 1.3320. The sharp rise indicates strong momentum, supporting the expectation for GBP to continue rising. The bullish outlook remains intact as long as GBP stays above 1.3105.
Analysis and Implications for Investors
For investors, the potential for GBP to test the 1.3250 resistance level presents an opportunity for profit. With strong momentum and a bullish outlook, there is scope for further gains in the GBP. It is important to monitor the key support levels and resistance levels mentioned by UOB Group FX strategists to make informed investment decisions.