British Pound: Could the rebound against US Dollar extend to 1.3440? – UOB

GBP/USD is consolidating around 1.3395 after its recent sharp gains, with room for a modest intraday advance within 1.3370–1.3415, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. For the coming weeks, the strategists remain positive and see scope for a move towards 1.3440, with strong support raised to 1.3330. As upward momentum strengthens, their 1–3 month outlook suggests the rebound could extend towards 1.3480.

Can the pound maintain its constructive technical setup?

"24-HOUR VIEW: GBP rose sharply to a high of 1.3409 two days ago. Yesterday, we indicated that “the sharp rise appears to be overdone, and instead of continuing to advance today, GBP is more likely to consolidate between 1.3340 and 1.3410.” GBP then traded within a 1.3369/1.3403 range, closing slightly higher at 1.3394 (+0.11%). The slight increase in upward momentum suggests GBP could edge higher today, but any advance should stay within a 1.3370/1.3415 range."

"1-3 WEEKS VIEW: Tracking our positive GBP view from late last week, we highlighted yesterday (21 Oct, spot at 1.3375) that “there is scope for GBP to rise to 1.3440 next.” We also highlighted that “a breach of 1.3300 (‘strong support’ level) would mean that GBP is not rising further.” We continue to hold the same view, but we are revising the ‘strong support’ level higher to 1.3330."

(An editor reviewed this article, which was produced with assistance from an Artificial Intelligence tool. Learn more.)