Set to rise and reach 1.3450 – UOB Group

The Pound Sterling (GBP) could rise and potentially reach 1.3450; the next resistance at 1.3480 is unlikely to come into view. Boost in momentum indicates further GBP strength; the next level to watch is 1.3480, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

Above 1.3450 GBP can reach 1.3480

24-HOUR VIEW: “While we expected GBP to strengthen yesterday, we indicated that it ‘is unlikely to reach the major resistance at 1.3400.’ The anticipated advance exceeded our expectations, as GBP soared and broke clearly above 1.3400. GBP continues to rise in early Asian trade today, and it could potentially reach 1.3450. The next resistance at 1.3480 is unlikely to come into view. Support levels are at 1.3400 and 1.3365.”

1-3 WEEKS VIEW: “Yesterday (24 Sep, spot at 1.3345), we highlighted after the price movements on Monday, ‘there has only been a slight increase in momentum, and it remains to be seen if GBP can break above the significant resistance at 1.3400.’ We were surprised by the ease with which GBP broke above 1.3400. The boost in momentum indicates further GBP strength is likely. The next level to watch is 1.3480. On the downside, if GBP breaches 1.3330 (‘strong support’ level previously at 1.3250), it would mean that the GBP strength from early last week has come to an end.”