British Pound: Upside bias toward 1.3700 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann describe GBP/USD price action as range-bound intraday between 1.3615 and 1.3660, with momentum indicators neutral. However, their 1–3 week view remains positive after turning bullish last week, looking for a move toward 1.3700 while keeping strong support at 1.3585. A break below that level would negate the upside scenario.

Range-bound now but bullish bias

"24-HOUR VIEW: After GBP closed little changed at 1.3644 (+0.09%) last Friday, we highlighted yesterday that “the price movements still appear to be part of a range-trading phase.” We expected GBP “to trade between 1.3620 and 1.3665.” Our view was not wrong, as GBP traded between 1.3621 and 1.3656 before closing at 1.3630 (-0.10%). There has been no shift in either downward or upward momentum, and GBP is likely to continue to trade in a range, probably between 1.3615 and 1.3660."

"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 (no change in ‘strong support level), it will 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.)