The British Pound has extended its rally against the US Dollar, hitting 1.3434 in a move that technical analysts at United Overseas Bank are flagging as potentially overextended. Currency strategists Quek Ser Leang and Lee Sue Ann note that while short-term conditions appear stretched, the pair could still retest the 1.3435 level before encountering significant resistance. The analysts maintain a bullish bias for GBP/USD within its current trading band, though they emphasize that a break above 1.3465 appears unlikely in the immediate term. This assessment comes as traders monitor Sterling’s strength amid ongoing dollar weakness and UK economic data. The limited upside projection suggests the pound’s gains may be capped despite positive momentum, with resistance levels clearly defined for position management.
FXnCO Insight
Traders should consider taking profits near 1.3435 resistance while watching 1.3465 as a hard ceiling for current positioning, as UOB signals Sterling’s rally may be nearing short-term exhaustion.
Source: FXStreet