British Pound: Range-trade now, 1.3700 in sight against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note GBP/USD remains in a short-term consolidation, with price action confined between 1.3620 and 1.3665 after an overbought push to 1.3675. Their 1–3 week view stays positive, looking for a move toward 1.3700 unless the pair falls through strong support at 1.3585, while longer-term signals still favor broader range trading.

Short term consolidation, medium term upside

"24-HOUR VIEW: GBP rose to a high of 1.3661 last Thursday and then eased. When it was at 1.3640 on Friday, we highlighted that “further GBP strength is not ruled out, but deeply overbought conditions suggest any advance could be contained within a 1.3605/1.3670 range.” We added, “even if GBP breaks above 1.3670, it is unlikely to reach the major resistance at 1.3700.” GBP subsequently rose to 1.3675 and then pulled back to close little changed at 1.3644 (+0.09%). The price movements still appear to be part of a range-trading phase. Today, we expect GBP to trade between 1.3620 and 1.3665."

"1-3 WEEKS VIEW: We turned positive on GBP last Monday (17 Aug, spot at 1.3540). On Friday (21 Aug, spot at 1.3640), we indicated that GBP “could continue to rise to 1.3700.” There is no change in our view. On the downside, if GBP breaks below 1.3585 (‘strong support’ level was at 1.3575 last Friday), it would mean that 1.3700 is out of reach."

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