The Pound Sterling (GBP) could continue to rise, but it might not be able to break clearly above last year’s high of 1.3144 today, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann notes.

Bulls are set to test 1.3144

24-HOUR VIEW: “GBP soared yesterday, closing at its highest level since July of last year (1.3090, +0.43%). Impulsive momentum will likely override the severely overbought conditions, but while GBP could continue to rise today, it might not be able to break clearly above last year’s high of 1.3144. On the downside, should GBP breach 1.3030 (minor support is at 1.3060), it would mean that it is not rising further.”

1-3 WEEKS VIEW: “Yesterday, GBP closed higher for the fifth straight day (1.30+0, +0.43%). This is the highest daily closing since July of last year. Note that last year, GBP peaked at 1.3144. The price action suggests there is scope for GBP to rise to, and potentially break above 1.3144, as long as it does not breach the ‘strong support’ level at 1.2950. Looking ahead, the level to watch above 1.3144 is 1.3200.”