Strong momentum points to further strength for the Pound Sterling (GBP). However, it appears overbought, so it might not reach 1.3600 right away. Still, the long-term outlook remains positive with a target of 1.3635. In the 24-hour view, GBP exceeded expectations by hitting 1.3550, but its rise may be limited under 1.3600. The resistance level is at 1.3570, and any drop is likely to stay above 1.3475, with minor support at 1.3505.

Outlook for GBP Remains Positive

For the next one to three weeks, the outlook for GBP stays positive after breaking past 1.3500 and reaching 1.3550. The strength is expected to continue as long as the support at 1.3420 remains intact, with 1.3635 as the next target. It’s vital to do thorough research before making any investment decisions. Investing involves risks, including the possibility of total loss and emotional stress. Always weigh these risks, and remember that this information isn’t a recommendation to buy or sell. What this indicates is that the Pound has been gradually moving higher in recent trading sessions. Sterling’s ability to go beyond 1.3550 reflects stronger sentiment than expected, though the rally may slow in the short term. Keep a close eye on the short-term range—resistance at 1.3570 may be tested, but breaking through without pulling back first seems less likely given the recent significant moves. Currently, these conditions suggest some caution over the next couple of days. This doesn’t mean confidence in further increases has diminished—rather, the rapid and large recent gains suggest we might see a pause or minor dip before another push toward the upper price range. Timing becomes especially important during moments like these.

Broader Trend Clearly Still Upward

Looking further ahead, the broader trend clearly remains upward. The recent movement above 1.3500 wasn’t purely technical; it also drew new buying interest, allowing it to reach 1.3550. This breakthrough supports the idea of ongoing gains over the next one to three weeks. It’s crucial for the pair to maintain a position above 1.3420. A drop below that level would create doubts about this bullish outlook. However, as long as that support holds, confidence in a move toward 1.3635 should stay strong. A small consolidation could actually be beneficial. It would allow recent buyers to regroup, reduce some overbought conditions, and re-enter at better prices. If dips are met with buying interest above 1.3475, it signals commitment and strength behind the current upward trend. From a reactive perspective, we’ve observed that during similar situations, maintaining setups with flexible stops—broad enough to accommodate natural price movements—has been effective, especially when the direction is clearer but the timing is uncertain. Planning entries near interim support levels like 1.3505 can provide a better reward-to-risk ratio than chasing breakouts, particularly when momentum indicators are high. Of course, having a bias doesn’t mean every movement will be straightforward. It’s easy to overcommit when a trend seems strong—history shows that waiting for price and structure to align is often a better approach than merely anticipating. With price behavior indicating strength but also showing some restraint, the next few sessions may require more patience than immediate actions. As things stand, there’s little to undermine the overall positive trend. Higher levels near 1.3635 remain significant targets. However, for those adjusting to daily changes, much will now depend on whether Sterling can build consistent support just above the breakout point. Create your live VT Markets account and start trading now.

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