British Pound: Gains against US Dollar capped by resistance at 1.3435 – UOB

GBP/USD is trading around 1.3390 following a sharp climb and subsequent retreat, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. They expect the British Pound (GBP) to trade within a 1.3360–1.3420 range in the short term. Looking ahead 1–3 weeks, price action identifies 1.3435 as key resistance, with a sustained advance likely only above that level. Strong support at 1.3330 continues to underpin the broader constructive outlook.

Pound-Dollar challenges key resistance zone

"24-HOUR VIEW: After GBP rose sharply last Thursday, we highlighted on Friday that GBP “could continue to rise and test 1.3420.” We added that “the next resistance at 1.3450 is unlikely to come under threat.” While GBP rose more than expected to 1.3433, it fell back sharply from the high to close slightly higher at 1.3389. GBP appears to have entered a range-trading phase. Today, we expect GBP to trade between 1.3360 and 1.3420."

"1-3 WEEKS VIEW: We highlighted last Friday (30 Oct, spot at 1.3380) that GBP “could rise toward 1.3420.” We pointed out that GBP “must break clearly above this level before a move to 1.3450 can be expected.” GBP subsequently broke above 1.3420 and reached a high of 1.3433. However, GBP was unable to hold on to its gains, as it fell sharply from the high. The price action suggests that 1.3435 is a key resistance now, and GBP must break clearly above this level before a sustained advance is likely. The likelihood of GBP breaking clearly above 1.3435 will remain intact as long as the ‘strong support’ at 1.3330 (level was at 1.3310 last Friday) is not breached."

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