Set to rise to 1.3450 – UOB Group

The British Pound (GBP) could rise and reach 1.3450; The next resistance at 1.3480 is unlikely to occur. Rising momentum indicates further GBP strength; The next level to watch is 1.3480, note UOB Group FX strategists Quek Ser Leang and Peter Chia.

Above £1.3450 it may reach 1.3480

24 HOURS: “While we expected GBP to strengthen yesterday, we indicated that it is ‘unlikely to hit major resistance at 1.3400.’ The anticipated advance exceeded our expectations as GBP rallied and broke clear above 1.3400. GBP continues to rise in early Asian trade today and could reach 1.3450. The next resistance at 1.3480 is unlikely to occur. Support levels are at 1.3400 and 1.3365.”

WEEKS 1-3: “Yesterday (September 24, spot at 1.3345), we highlighted, following Monday’s price movements, “there was only a slight build-up in momentum and it remains to be seen whether GBP can break the significant level. resistance at 1.3400.’ We were surprised at how easily GBP broke above 1.3400. The momentum build points to further GBP strength. The next level to watch is 1.3480. On the downside, if GBP breaks above 1.3330 (the previous ‘strong support’ level at 1.3250), it would mean that GBP’s strength from early last week is over.”