British Pound: Why is resistance at 1.3435 limiting gains against US Dollar? – UOB

The broader outlook for GBP/USD remains constructive, supported by strong support at 1.3330, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. Following a sharp rally and pullback, the pair is trading around 1.3390, with the British Pound (GBP) expected to stay within a short-term range of 1.3360 to 1.3420. For the next 1–3 weeks, price action points to key resistance at 1.3435; a sustained advance is likely only if the pair moves above this level.

Can Pound-Dollar break through the key resistance band?

"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.)