UOB Forecasts Further GBP/USD Upside Above Critical Support Level

United Overseas Bank (UOB) Group's FX analysts remain bullish on the British Pound against the US Dollar, stating that the upside bias remains intact as long as the pair stays above the key support level of 1.3605.

The analysts note that the current price action suggests the pound could extend its advance if the 1.3605 level holds. This level has become a critical pivot, and a break below it would signal that the bullish momentum has weakened, potentially leading to a consolidation phase.

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. However, a decisive break below could trigger a pullback toward the 1.3500 psychological level, which was a prior resistance-turned-support zone.