British Pound: Swift gains against US Dollar bring 1.3480 into view – UOB

GBP/USD has room for further gains as upward momentum strengthens sharply following its recent advance, according to United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann. Their intraday outlook sees the British Pound (GBP) holding above 1.3410, with a possible move towards 1.3480 and higher resistance at 1.3510. For the next 1–3 weeks, a test of 1.3480 remains in view, provided support at 1.3385 stays intact.

Can Pound-Dollar extend its gains?

"24-HOUR VIEW: GBP soared to a high of 1.3448 on Monday and then pulled back. Yesterday, we stated that “upward momentum has increased, but it is insufficient to indicate a continued rise.” We expected GBP “to consolidate between 1.3380 and 1.3435.” Our view of consolidation was not wrong, even though GBP traded within a narrower range of 1.3397/1.3432, closing little changed at 1.3414 (+0.04%). Today, British Pound (GBP) rose sharply and there has been a rapid increase in upward momentum. From here, as long as GBP holds above 1.3410, it could rise to 1.3480. A break above this level is not ruled out, but the next resistance at 1.3510 is likely out of reach."

"1-3 WEEKS VIEW: Following our positive GBP view from last Friday, we highlighted yesterday (03 Nov, spot at 1.3410) that “there is scope for GBP to test 1.3480.” We will continue to hold the same view as long as 1.3385 (‘strong support’ level was at 1.3360 yesterday) is not breached. Looking ahead, the next level to watch above 1.3480 is 1.3510."

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