British Pound could rise towards 1.3440 against US Dollar – UOB

An intraday range of 1.3355 to 1.3400 is expected for GBP/USD, with United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann maintaining a constructive outlook despite the pair’s recent range-bound trading. Over a 1–3 week horizon, they continue to see scope for a rise towards 1.3440, provided support at 1.3340 is not breached.

Pound-Dollar holds a modest bullish bias

"24-HOUR VIEW: Following last Thursday’s price action, we indicated on Friday that “there has been no clear shift in either downward or upward momentum,” and we expected GBP “to trade between 1.3360 and 1.3420.” GBP subsequently traded within a range of 1.3362/1.3407. The current price movements still appear to be part of a range-trading phase, likely between 1.3355 and 1.3400."

"1-3 WEEKS VIEW: We have been holding a positive GBP view since the middle of the month. In our most recent narrative from last Wednesday (21 Oct, spot at 1.3375), we highlighted that “there is scope for GBP to rise to 1.3440 next.” While GBP subsequently rose to a high of 1.3418, it has not been able to make much headway on the upside. That said, only a breach of 1.3340 (‘strong support’ level previously at 1.3330) would mean 1.3440 is not coming into view"

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