GBP Eyes 1.3700 as Momentum Continues
According to Quek Ser Leang at United Overseas Bank (UOB), the British Pound has maintained its upward momentum against the US Dollar, breaking key resistance levels. Despite being 'deeply overbought', the Pound remains supported above 1.3640 and is expected to continue rising towards 1.3700 in the next 1-3 weeks.
The Pound's surge was unexpected as it surpassed initial targets of 1.3605 and 1.3670, which were seen as a range for any further gains. However, with momentum indicators showing negative divergence, Quek warns that even if the Pound breaks above 1.3670, it may not reach its major resistance at 1.3700.
To sustain its upward momentum and reach the target of 1.3700, the Pound must hold above 1.3570, which is considered a 'strong support' level.