GBP/USD: Overbought circumstances recommend any advance is unlikely to achieve 1.3600 – UOB Group

Sturdy momentum signifies additional Pound Sterling (GBP) energy; overbought circumstances recommend any advance is unlikely to achieve 1.3600. Within the longer run, upward momentum stays robust; the following goal is 1.3635, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.

Upward momentum stays robust

24-HOUR VIEW: “Following final Thursday’s value motion, we indicated on Friday that ‘The worth motion gives no contemporary clues, and we proceed to count on consolidation at the moment, almost certainly inside a spread of 1.3375/1.3450.’ We didn’t count on GBP to surge to 1.3550. Whereas robust upward momentum signifies additional GBP energy, overbought circumstances recommend that any advance is unlikely to achieve 1.3600. Notice that there’s one other resistance stage at 1.3570. On the draw back, any intraday pullback is more likely to maintain above 1.3475, with minor help at 1.3505.”

1-3 WEEKS VIEW: “We revised our GBP outlook to optimistic in the course of final week (see annotations within the chart beneath). In our newest narrative from final Thursday (22 Could, spot at 1.3420), we indicated that ‘momentum indicators proceed to level to GBP upside, and the following technical goal is at 1.3500.’ GBP broke above 1.3500 final Friday, reaching a excessive of 1.3550. Upward momentum stays robust, and the following goal is 1.3635. We are going to proceed to count on GBP energy so long as 1.3420 (‘robust help’ stage beforehand at 1.3340) just isn’t breached.”