GBP/USD is set to grow towards the next major resistance at 1.2900 – UOB Group

Price action continues to suggest upside risk, so there’s room for the Pound Sterling (GBP) to grow towards the next major resistance at 1.2900, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

The next level to watch is at 1.2900

24-HOUR VIEW: “Our expectation for GBP to trade in a sideways range of 1.2770/1.2820 yesterday was incorrect. Instead of trading sideways, GBP rose sharply to a high of 1.2849. Upward momentum is building, and today GBP broke above 1.2860, so the next major resistance is at 1.2900. To maintain the momentum buildup, GBP must not break below 1.2805, with minor support at 1.2825.”

1-3 WEEKS VIEW: “On Monday (08 Jul, spot at 1.2805), we indicated that ‘the risk for GBP remains on the upside, and the level to watch is 1.2860.’ We added, ‘if GBP breaks below 1.2750, it would mean that the upside risk from last Thursday has faded.’ Yesterday, GBP rose and closed at a 4-month high of 1.2849 (+0.48%). The price action continues to suggest upside risk. The next level to monitor is 1.2900. On the downside, the ‘strong support’ level has moved higher to 1.2775 from 1.2750.”