British Pound: Can it climb toward 1.3440 against US Dollar? - UOB

GBP/USD retains scope for gains despite volatile trading that left the pair closing little changed, with no decisive shift in momentum, according to Quek Ser Leang and Lee Sue Ann, strategists at United Overseas Bank (UOB). They anticipate an intraday range of 1.3360–1.3420 and continue to see room for a rise towards 1.3440 over 1–3 weeks. Their broader 1–3 month outlook points to a further recovery towards 1.3480, unless a break below support at 1.3330 signals that the advance has run its course.

Can sterling maintain its modest upward 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."

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