Price action suggests there is scope for Pound Sterling (GBP) to rise to, and potentially break above the 2023 peak of 1.3144, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

GBP bulls target the 1.3144 level

24-HOUR VIEW: “GBP surged two days ago. Yesterday, we indicated that ‘while GBP could continue to rise, it might not be able to break clearly above last year’s high of 1.3144.’ GBP subsequently rose to 1.3130, pulling back to close largely unchanged at 1.3093 (+0.02%). The pullback in overbought conditions indicates that GBP is likely to trade in a range today, probably between 1.3065 and 1.3125.”

1-3 WEEKS VIEW: “We highlighted yesterday (22 Aug, spot at 1.3090) that the recent price action suggests there is scope for GBP to rise to, and potentially break above the 2023 peak of 1.3144. We continue to hold the same view. The likelihood of GBP breaking above 1.3144 will remain intact as long as 1.2970 (‘strong support’ level was at 1.2950 yesterday) is not breached. Looking ahead, the next level to monitor above 1.3144 is 1.3200.”