Bulls push towards 1.3144 resistance – UOB Group

Price action suggests there is scope for the pound sterling (GBP) to rally and potentially break the 2023 peak of 1.3144, note UOB Group FX strategists Quek Ser Leang and Peter Chia.

GBP bulls are targeting the 1.3144 level

24-HOUR OUTLOOK: “The GBP rose two days ago. Yesterday, I indicated that “while GBP may continue to rise, it may not be able to break clear above last year’s high of 1.3144”. GBP later rose to 1.3130, retreating to close largely unchanged at 1.3093 (+0.02%). The pullback in overbought conditions indicates that GBP is likely to trade in a range today, probably between 1.3065 and 1.3125.”

WEEKS 1-3: “We highlighted yesterday (22 August, spot at 1.3090) that recent price action suggests there is scope for GBP to rise and break the 2023 peak of 1.3144. We continue to have the same opinion. The likelihood of GBP breaking above 1.3144 will remain intact as long as 1.2970 (“strong support” level was at 1.2950 yesterday) is not breached. Looking ahead, the next level to watch above 1.3144 is 1.3200.”