GBP/USD: Outlook for GBP has shifted to positive – UOB Group

Pound Sterling (GBP) is likely to trade in a range vs US Dollar (USD), probably between 1.3000 and 1.3145. In the longer run, outlook for GBP has shifted to positive; the two technical levels to watch are 1.3210 and 1.3290, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

The two technical levels to watch are 1.3210 and 1.3290

24-HOUR VIEW: "Following the strong rise in GBP last Thursday, we highlighted on Friday that 'the impulsive momentum suggests further GBP strength, but it remains to be seen if 1.3100 is within reach.' The anticipated advance exceeded our expectations as GBP surged to 1.3146, closing

at 1.3128 (+1.23%). Deeply overbought conditions, combined with tentative signs of slowing momentum, suggest that instead of continuing to rise, GBP is more likely to trade in a range today, probably between 1.3000 and 1.3145."

1-3 WEEKS VIEW: "Our update from last Friday (11 Apr, spot at 1.2990) remains valid. As highlighted, 'the outlook for GBP has shifted to positive, and the two technical levels to watch are 1.3210 and 1.3290.' We will maintain our view as long as 1.2880 (‘strong support’ level was at 1.2820 last Friday) is not breached."