British Pound: Short term bias tilts higher against US Dollar – UOB

UOB’s Quek Ser Leang and Lee Sue Ann note GBP/USD edged higher to around 1.3545, with no significant build-up in momentum but a modest upside tilt toward 1.3565 in the near term. They stress that major resistance at 1.3600 is unlikely to come into view and keep a neutral one-to-three-week stance, expecting the British Pound (GBP) to oscillate between 1.3480 and 1.3600.

Sterling stays broadly range bound

"24-HOUR VIEW: GBP traded between 1.3482 and 1.3550 last Friday and closed little changed at 1.3518 (-0.05%). Yesterday, we indicated that “the price action did not lead to any shift in either downward or upward momentum,” and we expected GBP “to trade in a range between 1.3490 and 1.3540.” However, GBP did not quite trade within the expected range, as it edged up from 1.3508 to 1.3547. Although there has been no significant increase in upward momentum, the bias for GBP today appears tilted to the upside, likely toward 1.3565. We do not expect the major resistance at 1.3600 to come into view. On the downside, a breach of 1.3520 (minor support is at 1.3530) would mean that the upside bias has faded."

"1-3 WEEKS VIEW: There is not much to add to our update from last Friday (04 Sep, spot at 1.3530). As highlighted, GBP “is neutral now and it is likely to trade between 1.3480 and 1.3600."

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