GBP USD Eyes Further Gains Above 1.2850, Say UOB Analysts - UOB Group's Economist Lee Sue Ann and Markets Strategist Quek Ser Leang believe that GBPUSD could experience additional gains and potentially reach the 1.2900 level, as long as it remains above 1.2850. The recent surge in the currency pair has surpassed expectations, with the GBP soaring to a high of 1.2850, just one pip above last month's peak of 1.2849. While the rapid rise may appear excessive, there are currently no signs of a reversal. UOB analysts suggest that GBP could potentially climb to 1.2865 before the upward pressure subsides. However, they do not expect the 1.2900 level to come into view today. Key support levels are identified at 1.2805 and 1.2780.
The 24-hour view indicates that UOB did not anticipate the significant surge in GBP, which propelled it to 1.2850. Despite the possibility of the rise being overdone, there are no immediate signs of a reversal. As a result, GBP could continue its upward trajectory and potentially reach 1.2865. However, UOB analysts believe that it is unlikely for the currency pair to breach the 1.2900 level at this time. On the downside, support levels can be found at 1.2805 and 1.2780.
UOB's previous narrative, issued on July 5th when GBP was at 1.2715, suggested that the currency pair would likely consolidate and trade within a range of 1.2630 to 1.2800. However, GBP defied expectations and surged to a high of 1.2850 last Friday. Although this shift in price action has increased the upside risk, UOB analysts emphasize the importance of a sustained break and stay above 1.2850 for a potential advance towards 1.2900. As long as GBP remains above the 'strong support' level at 1.2735, the upside potential is maintained.
For Forex and cryptocurrency traders closely monitoring the GBP/USD pair, the recent developments provide important insights. The unexpected surge in GBP has created opportunities for traders to capitalize on the upward momentum. However, it is crucial to consider the potential overextension of the rally and the absence of reversal signs. UOB's analysis suggests that short-term gains may be possible, with GBP potentially reaching 1.2865. Nevertheless, the resistance at 1.2900 is expected to be a significant hurdle for the currency pair in the near term. Traders should pay attention to the support levels at 1.2805 and 1.2780, which may act as potential areas for market reversals.
As the GBP/USD pair hovers near its recent high, Forex traders are keeping a close eye on the currency pair for a potential breakout above 1.2850. A sustained move above this level could signify the continuation of the upward trend and pave the way for further gains towards 1.2900. Conversely, failure to break and hold above 1.2850 might result in a consolidation or even a retracement towards support levels. Therefore, traders are advised to carefully monitor price action and key levels, considering both the short-term momentum and the medium-term outlook provided by UOB analysts.