The British pound surged sharply against the US dollar in early trading, with UOB currency strategists Quek Ser Leang and Lee Sue Ann flagging significant upside momentum in GBP/USD. The pair is showing rapid strength that could push it toward the 1.3505 test level in the near term, according to the bank’s analysis. However, strategists identify 1.3530 as a critical resistance point that may cap further gains.
The sharp opening move suggests renewed sterling demand, potentially driven by dollar weakness or UK-specific factors. Traders holding GBP positions are watching these technical levels closely as momentum builds. The move affects currency traders, UK exporters and importers, and those with cross-border exposure between the US and Britain. Breaking through 1.3530 would open further upside territory, while failure at this resistance could trigger profit-taking.
FXnCO Insight
Watch for a test of 1.3505 with tight stops below recent support, but prepare for potential rejection at the 1.3530 resistance level where profit-taking may emerge.
Source: FXStreet