GBP/USD faces the next resistance at 1.3600 – UOB

Cable is now expected to advance to the 1.3600 region in the short-term horizon, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “GBP popped to a high of 1.3551 last Friday before easing off. The combination of overbought conditions coupled with waning momentum suggest that GBP is unlikely to strengthen much further. For today, GBP is more likely to consolidate and trade between 1.3480 and 1.3550.”

Next 1-3 weeks: “While the sharp rise in GBP over the past couple of weeks appears to be overdone, the advance is not showing any sign of weakness just yet. In other words, there is room for GBP to advance further. The next resistance is at 1.3600. On the downside, a breach of 1.3430 (‘strong support’ level) would indicate that the current upward pressure has eased.”