GBP/USD: A sustained advance can be expected above 1.3600 – UOB Group

Current price movements are likely part of a 1.3490/1.3555 range trading phase. In the longer run, Pound Sterling (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.

Current price movements are likely part of a 1.3490/1.3555 range

24-HOUR VIEW: "GBP soared to 1.3559 on Monday. Yesterday, Tuesday, we indicated that 'strong momentum suggests further GBP strength, even though it is unclear this will be sufficient for a break of the 1.3600 resistance.' Our assessment was incorrect, as GBP retreated, reaching a low of 1.3493 before closing at 1.3520 (-0.18%). The current price movements are likely part of a range trading phase. Today, we expect GBP to trade between 1.3490 and 1.3555."

1-3 WEEKS VIEW: "Last Friday (30 May, spot at 1.3500), we indicated that 'the current price movements still appear to be part of a range trading phase, likely between 1.3400 and 1.3600.' After GBP rose to 1.3559, we indicated yesterday (03 Jun, spot at 1.3555) that 'there has been an increase in short-term upward momentum, but for a sustained advance, GBP must first close above 1.3600.' We added, 'the likelihood of GBP closing above 1.3600 will grow in the next few days as long as the ‘strong support’ level at 1.3470 is intact.' Our view remains unchanged."