United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann reported that GBP/USD extended its gains to reach a high of 1.3590, with short-term market conditions described as overbought. Despite these stretched conditions, the strategists see scope for a further push toward 1.3605, though they judge the major resistance at 1.3640 as likely out of reach for now [1].
UOB notes that to sustain the current overbought momentum, GBP/USD must remain above 1.3525, with minor support identified at 1.3555. The analysts highlight that further Pound strength is expected over the next 1–3 weeks unless support at 1.3415 is breached. They also caution that a weekly close below the key support at 1.3300 could trigger a decline toward the major support zone at 1.2945/1.3010 [1].
While the strategists acknowledge the possibility of further gains, they emphasize that the upside appears stretched and the next technical target at 1.3645 may not be reached soon due to the overbought short-term conditions [1].
CONCLUSION
GBP/USD has shown strong upward momentum, but UOB strategists caution that the rally is overbought and further gains may be limited. Key support levels will be critical in determining whether the Pound can sustain its strength or faces a potential pullback.