1.3440: Scope for British Pound to advance towards this level against US Dollar - UOB

1.3440 remains the upside target in the 1–3 week GBP/USD view of United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. Despite sharp swings, the pair finished little changed, leaving momentum without a clear directional shift. The strategists expect an intraday range of 1.3360–1.3420. Over 1–3 months, they see scope for the rebound to extend towards 1.3480, unless a break of support at 1.3330 signals that the advance has ended.

1.3440 in focus as sterling maintains a modest upside bias

"24-HOUR VIEW: When GBP was at 1.3395 yesterday, we indicated that “the slight increase in upward momentum suggests GBP could edge higher today, but any advance should stay within a 1.3370/1.3415 range.” The subsequent price movements did not unfold as expected. GBP edged to a high of 1.3418 before dropping sharply to a low of 1.3355. GBP rebounded from the low to close largely unchanged at 1.3402 (+0.06%). There has been no clear shift in either downward or upward momentum. Today, we expect GBP to trade between 1.3360 and 1.3420."

"1-3 WEEKS VIEW: Our update from Wednesday (21 Oct, spot at 1.3375) still stands. As highlighted, “there is scope for GBP to rise to 1.3440 next.” On the downside, a breach of 1.3330 (no change in ‘strong support’ level) would mean the advance from late last week has run its course."

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