The Pound Sterling (GBP) has shown signs of further strengthening, with analysts at UOB Group predicting a possible breach of the major resistance level at 1.3320.
Bulls in Control
24-HOUR VIEW: The GBP surged to a 2-1/2 year high of 1.3269 unexpectedly, indicating strong momentum for further gains. However, the currency may face resistance at 1.3295 and 1.3320. To sustain the upward trend, GBP must maintain above 1.3215, with minor support at 1.3235.
1-3 WEEKS VIEW: The key level to watch is 1.3320, as GBP continues its upward trajectory. A breach of this level could signal further gains, while a drop below 1.3145 would indicate a weakening trend.
Analysis:
In simple terms, the Pound Sterling is showing strength and could potentially rise further, but it may face resistance at 1.3295 and 1.3320. Traders should watch for breaks above these levels for confirmation of an upward trend. Conversely, a drop below 1.3215 could indicate a reversal in GBP’s strength. It’s crucial to monitor these levels to make informed decisions in the forex market.