British Pound: Further rebound potential toward 1.3440 against US Dollar – UOB

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann highlight that GBP/USD’s recent sharp gains have left the pair consolidating around 1.3395, with scope for a modest intraday rise within 1.3370–1.3415. Over the coming weeks they maintain a constructive stance, looking for a move toward 1.3440 while raising strong support to 1.3330. Their 1–3 month outlook points to further rebound potential toward 1.3480 as upward momentum builds.

Pound retains constructive technical setup

"24-HOUR VIEW: GBP rose sharply to a high of 1.3409 two days ago. Yesterday, we indicated that “the sharp rise appears to be overdone, and instead of continuing to advance today, GBP is more likely to consolidate between 1.3340 and 1.3410.” GBP then traded within a 1.3369/1.3403 range, closing slightly higher at 1.3394 (+0.11%). The slight increase in upward momentum suggests GBP could edge higher today, but any advance should stay within a 1.3370/1.3415 range."

"1-3 WEEKS VIEW: Tracking our positive GBP view from late last week, we highlighted yesterday (21 Oct, spot at 1.3375) that “there is scope for GBP to rise to 1.3440 next.” We also highlighted that “a breach of 1.3300 (‘strong support’ level) would mean that GBP is not rising further.” We continue to hold the same view, but we are revising the ‘strong support’ level higher to 1.3330."

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