GBP/USD: Upside Momentum Targets 1.3700 — UOB

GBP/USD is trading near 1.36396, maintaining an overall upward bias. UOB strategist Quek Ser Leang noted in the latest report that the pair has broken through key resistance, with support holding around 1.3640. Short-term gains may be limited to the 1.3605-1.3670 range, but the medium-term structure leans toward further upside.

**Short-term momentum persists, but upside pace constrained**

According to UOB analysis, after breaking resistance near 1.3555, GBP/USD has extended its upward momentum, with further gains possible intraday. However, strong technical resistance exists in the 1.3600-1.3670 zone, where short-term gains may consolidate. Market reports indicate sterling has been supported by the Bank of England's relatively hawkish stance and improved risk sentiment, while the dollar maintains resilience amid economic data and policy expectations.

**1-3 week outlook: Target raised to 1.3700**

Quek Ser Leang expects GBP/USD to continue advancing toward 1.3700 over the next 1-3 weeks, provided the pair holds above 1.3570. A break below this support would significantly weaken upside momentum. UOB previously viewed 1.3600 as major resistance, but the latest report shows the target has been revised higher following confirmation of the breakout. Longer-term signals still point to range trading, suggesting potential volatility around 1.3700.

**Risk factors and key levels to watch**

On the downside, 1.3570 serves as key short-term support; a loss of this level would warrant reassessment of the upward bias. Markets are focused on upcoming UK inflation and employment data, as well as Federal Reserve policy signals, which could influence the pair's sustainability above 1.3600. Analysts caution that achieving the 1.3700 target requires holding 1.3570, and short-term traders should monitor the 1.3605-1.3670 range for volatility.