1.3440: British Pound could extend rebound against US Dollar – UOB

GBP/USD is consolidating around 1.3395. United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann attribute this pause to the pair’s recent sharp gains and see room for a modest intraday advance within 1.3370–1.3415. Their outlook for the coming weeks remains constructive, with 1.3440 in view and strong support lifted to 1.3330. As upward momentum strengthens, their 1–3 month outlook signals scope for the rebound to extend towards 1.3480.

Pound’s Technical Outlook Remains Constructive

"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."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)