There is room for GBP to test 1.3250 – UOB Group

As long as 1.3160 ​​is not breached, there is room for GBP to test 1.3250, after which the advance could break, note UOB Group FX strategists Quek Ser Leang and Lee Sue Ann.

The 1.3250 resistance is the next target

24 HOUR VIEW: “We didn’t expect GBP to go higher last Friday (we were expecting range trading). The sudden and rapid rise during NY trading seems to be getting ahead of itself. However, as long as 1.3160 ​​is not breached, there is room for GBP to test 1.3250, after which the advance could break. The next major resistance at 1.3300 is unlikely to occur. To maintain momentum, GBP must not fall below 1.3165 (minor support is at 1.3185).”

WEEKS 1-3: “The level to watch is 1.3320. Last Thursday (22 August, spot at 1.3090), we indicated that “recent price action suggests there is scope for GBP to rally and potentially break above the 2023 peak of 1.3144”. I added, “the next level to monitor above 1.3144 is 1.3200.” While our view of a higher GBP was correct, its forward speed exceeded our expectations as it rose 0.94% last Friday (NY close of 1.3216) and closed at its highest level from February 2022. Not surprisingly, sharp and fast growth is coupled with a strong momentum. In other words, we continue to expect the GBP to rise. The next level to monitor is 1.3320. We will maintain our view of a higher GBP provided 1.3105 (the ‘strong support’ level was at 1.2970 last Friday) is not breached.”