British Pound: Upside risk toward 1.3405 within range – UOB

United Overseas Bank’s (UOB) Quek Ser Leang reports GBP/USD eased to 1.3304 but remains supported after last week’s surge to 1.3371. Intraday, the Pound is expected to consolidate between 1.3285 and 1.3335 as momentum indicators flatten. On a 1–3 week horizon, UOB still sees scope for a push toward 1.3405, provided GBP holds above strong support at 1.3260.

Pound-Dollar consolidates with bullish bias

"24-HOUR VIEW: GBP soared to a high of 1.3371 last Friday and then pulled back. Yesterday, when GBP was at 1.3325, we indicated the following: “Upward momentum has slowed with the pullback. This, combined with overbought conditions, suggests that instead of continuing to rise, GBP is more likely to range-trade between 1.3290 and 1.3360.” We were not wrong, even though GBP traded within a narrower range of 1.3300/1.3348. There has been no shift in momentum indicators, and we continue to expect GBP to range-trade today, most likely between 1.3285 and 1.3335."

"1-3 WEEKS VIEW: Last Friday (16 Oct, spot at 1.3270), we indicated that GBP “could edge higher toward 1.3315.” After GBP broke above 1.3315 and soared to 1.3371, we highlighted yesterday (19 Oct, spot at 1.3325) that “upward momentum continues to increase, and GBP could rise toward 1.3405 next.” To keep the momentum going, GBP must hold above the ‘strong support’ at 1.3260 (no change in level)"

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