GBP/USD Bulls Hold Firm Above Key Support
The British Pound (GBP) has been showing resilience in recent weeks, buoyed by expectations of further interest rate hikes from the Bank of England. According to UOB's FX analysts, the pair's upside bias remains intact as long as it stays above the key support level of 1.3605.
UOB's Technical Outlook for GBP/USD suggests that the current price action indicates the pound could extend its advance provided that the 1.3605 level holds. The analysts highlighted that the pair's recent climb has been supported by a combination of technical factors, including higher lows and sustained buying interest on dips.
The next resistance zone is seen around the 1.3700 area, with a clear break above that level opening the door for a test of the 1.3750 region. For traders, the 1.3605 level serves as a line in the sand - as long as the pair trades above it, the path of least resistance is to the upside.