The Pound Sterling (GBP) could break above 1.2900, but it might not be able to maintain a foothold above this level, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Bears may try to test 1.2780  

24-HOUR VIEW: “We did not anticipate GBP to surge yesterday, as it registered its biggest 1-day gain in four months (1.2862, 0.76%). We were expecting sideways trading. While GBP could rise further today and break above 1.2900, oversold conditions suggest it might not be able to maintain a foothold above this level. The next resistance at 1.2950 is unlikely to come into view. On the downside, support levels are at 1.2845 and 1.2820.”