The GBP/USD pair is gaining upside momentum, testing the key resistance at 1.2730, with analysts at UOB Group highlighting the possibility of a breakout. While further gains are not ruled out, overbought conditions may limit the next resistance at 1.2770 in the short term. However, for sustained bullish momentum, GBP/USD must hold above 1.2730 in the coming sessions.
Short-Term Outlook: Pound Poised for a Test of 1.2730
📈 24-Hour View: GBP/USD surged unexpectedly in the last session, defying range-bound expectations. While the rapid rally suggests a temporary overbought condition, the pair could still test the 1.2730 resistance if 1.2645 holds as support. A break above 1.2730 is possible, but further upside to 1.2770 may be capped in the short term.
📉 Key Levels to Watch:
- Resistance: 1.2730 (Key level), 1.2770 (Next target if bullish breakout occurs)
- Support: 1.2670 (Minor), 1.2645 (Stronger support), 1.2610 (Critical support for bullish outlook)
Medium-Term Outlook: Bulls Need a Sustained Break Above 1.2730
📊 1-3 Week View: GBP/USD broke past the 1.2670 range and surged to 1.2724, indicating rising bullish momentum. If the pair sustains above 1.2730, the upside potential strengthens significantly. However, failure to hold above this level may result in a pullback, with 1.2610 acting as strong support.
📢 Analyst Take:
- A confirmed break above 1.2730 could pave the way for a further rally.
- A drop below 1.2610 could shift momentum back into a consolidation phase.
Fundamental Factors Driving GBP/USD
💷 Pound Sterling Outlook:
- Strong market sentiment is favoring GBP amid optimism over the UK economy.
- If UK inflation or economic data surprises to the upside, the Pound could gain additional strength.
💵 US Dollar Influence:
- The US Dollar Index (DXY) has been slightly weaker, supporting GBP/USD upside.
- Federal Reserve rate expectations and US employment data this week could add volatility.
What’s Next for GBP/USD?
Traders should watch 1.2730 closely—a break and sustained move above this level would reinforce bullish momentum, while a failure to break above could signal consolidation or a potential retracement.
💡 Stay updated with the latest Forex news at DailyForex.PK! 🚀