The British Pound (GBP) experienced a volatile trading session against the US Dollar (USD), with the GBP/USD pair dropping to a low of 1.3401 before rebounding sharply to close at 1.3481, marking a 0.13% gain on the day [1]. According to United Overseas Bank’s (UOB) Quek Ser Leang, while the sharp rise in GBP/USD has the potential to extend further, overbought conditions may limit any additional gains to a test of 1.3520, with the major resistance at 1.3555 unlikely to be reached in the immediate term [1].
For the next one to three weeks, UOB notes that the GBP has broken above the significant resistance at 1.3400 and surged to 1.3494, indicating strong momentum. However, there is uncertainty about whether the pair can break and sustain levels above the next key resistance at 1.3555 [1]. To maintain this upward momentum, the GBP must remain above the strong support level, currently identified at 1.3385 [1].
Short-term support is seen at 1.3450, with a breach of 1.3425 signaling that the current upward pressure may have eased [1]. The analysis suggests that while further gains are possible, the rally could stall due to overbought technical conditions and significant resistance levels ahead [1].
No specific market reactions or analyst opinions beyond UOB’s technical outlook are provided in the source article [1].
CONCLUSION
The British Pound has shown strong momentum against the US Dollar, but faces significant resistance near 1.3555 and overbought conditions may limit further gains. Traders should watch for support at 1.3385 and resistance at 1.3520–1.3555 as key levels for the pair’s next move.