GBP/USD: Unlikely to break clearly above 1.3600 – UOB Group

A slight increase in upward momentum suggests an upside bias, but Pound Sterling (GBP) is unlikely to break clearly above 1.3600. In the longer run, GBP must first close above 1.3600 before a sustained advance can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

A sustained advance can be expected above 1.3600

24-HOUR VIEW: "In the early Asian session yesterday, when GBP was at 1.3530, we pointed out that 'the current price movements are likely part of a 1.3490/1.3555 range trading phase.' GBP traded in a wider range than expected, between 1.3501 and 1.3580, closing at 1.3556 (+0.27%). The slight increase in momentum suggests an upside bias today, but currently, GBP does not appear to have enough momentum to break clearly above 1.3600 (there is another resistance at 1.3580). Support levels are at 1.3530 and 1.3510."

1-3 WEEKS VIEW: "Two days ago (03 Jun, spot at 1.3555), we indicated that 'there has been an increase in short-term upward momentum, but for a sustained advance, GBP must first close above 1.3600.' GBP traded in a relatively stable manner over the past couple of days, and we continue to hold the same view. Overall, only a breach of 1.3470 (no change in the ‘strong support’ level) would mean that the potential for GBP breaking clearly above 1.3600 has faded."