GBP Rally Hits Speed Bump Near Key 1.3555 Level

The British Pound (GBP) extended its rally from last week, but analysts at United Overseas Bank (UOB) warn that overbought conditions may limit further upside. In a recent update, UOB's Quek Ser Leang and Lee Sue Ann highlight that the GBP/USD pair has printed a high of 1.3530, just shy of the key level of 1.3555. While momentum has improved slightly, they caution that a sustained break above 1.3555 appears unlikely.

The analysts point out that strong support for the Pound now stands at 1.3460, which would need to be held if the currency is to continue its upward trajectory. They also note that the GBP/USD pair has been trading within a narrow range of 1.3490-1.3535.

UOB's analysts had previously turned positive on the Pound last Monday (03 Aug) with spot at 1.3485, but warned that it remained to be seen whether it could break above 1.3555.