Steadily moving towards 1.3144 – UOB Group

The British pound (GBP) may continue to rise but may not be able to break clear above last year’s high of 1.3144 today, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

Bulls are ready to test 1.3144

24 HOURS: “GBP rallied yesterday, closing at its highest level since July last year (1.3090, +0.43%). Bullish momentum is likely to overcome severely overbought conditions, but while GBP may continue to rise today, it may not be able to break clear above last year’s high of 1.3144. On the downside, if GBP were to reach 1.3030 (minor support is at 1.3060) it would mean no more upside.”

WEEKS 1-3: “Yesterday, GBP closed higher for a fifth straight day (1.30+0, +0.43%). This is the highest daily close since July last year. Note that last year GBP peaked at 1.3144. Price action suggests that there is scope for GBP to rally and break above 1.3144 as long as it does not breach the ‘strong support’ level at 1.2950. Looking ahead, the level to watch above 1.3144 is 1.3200.”