British Pound momentum against the US Dollar remains stretched but intact following last week’s sharp rally, according to United Overseas Bank strategist Quek Ser Leang. The GBP/USD pair is trading in overbought territory with upside potential still targeting the 1.3410 level despite elevated conditions. Any near-term pullback is expected to be shallow, with downside support firmly anchored between 1.3320 and 1.3375 on an intraday basis. UOB analysts stress that the risk of breaking clearly below the 1.3320 floor remains minimal, suggesting the overall bullish structure stays resilient. The assessment indicates sterling strength persists even as technical indicators flash warning signs of exhaustion. Traders are monitoring whether momentum can push through resistance or if profit-taking will trigger consolidation within the identified range. The analysis arrives as currency markets digest recent UK economic data and shifting Federal Reserve expectations that have supported pound gains.
FXnCO Insight
Position for limited downside with buy-on-dip opportunities emerging near 1.3320–1.3375 support zone while keeping 1.3410 as the primary upside target.
Source: FXStreet