British Pound: Rapidly rising toward 1.3480 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight a sharp pickup in upward momentum in GBP/USD after recent gains. Intraday, the British Pound (GBP) is expected to hold above 1.3410 and potentially rise toward 1.3480, with 1.3510 seen as a higher resistance. Over the 1–3 week horizon, they continue to see scope for a test of 1.3480 as long as 1.3385 support holds.

Pound-Dollar upside scope extends

"24-HOUR VIEW: GBP soared to a high of 1.3448 on Monday and then pulled back. Yesterday, we stated that “upward momentum has increased, but it is insufficient to indicate a continued rise.” We expected GBP “to consolidate between 1.3380 and 1.3435.” Our view of consolidation was not wrong, even though GBP traded within a narrower range of 1.3397/1.3432, closing little changed at 1.3414 (+0.04%). Today, British Pound (GBP) rose sharply and there has been a rapid increase in upward momentum. From here, as long as GBP holds above 1.3410, it could rise to 1.3480. A break above this level is not ruled out, but the next resistance at 1.3510 is likely out of reach."

"1-3 WEEKS VIEW: Following our positive GBP view from last Friday, we highlighted yesterday (03 Nov, spot at 1.3410) that “there is scope for GBP to test 1.3480.” We will continue to hold the same view as long as 1.3385 (‘strong support’ level was at 1.3360 yesterday) is not breached. Looking ahead, the next level to watch above 1.3480 is 1.3510."

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