GBP/USD may potentially rise to 1.3750 – UOB Group

Momentum is increasing, and Pound Sterling (GBP) could strengthen toward 1.3720 against US Dollar (USD). In the longer run, outlook for GBP is positive; it may rise to 1.3720, potentially 1.3750, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Outlook for GBP is positive

24-HOUR VIEW: "We did not expect GBP to rise to 1.3671 (as we were expecting range-trading). GBP closed at 1.3655 (+0.34%) before rising further today. Momentum is increasing and GBP could strengthen toward 1.3720. At this time, it is unclear whether the current momentum can carry GBP to 1.3750. On the downside, support levels are at 1.3660 and 1.3640."

1-3 WEEKS VIEW: "In our latest narrative from two days ago (24 Jun, spot at 1.3545), we highlighted that the recent 'downward momentum buildup has faded.' We also highlighted that 'the outlook appears mixed, and GBP could trade in a range of 1.3420/1.3655 for now.' We reiterated our view yesterday, but we pointed out that 'should GBP break and hold above 1.3655, it would increase the potential for GBP moving above 1.3700.' GBP subsequently rose and closed at 1.3665 (+0.34%). Today, we are revising our GBP outlook to positive, and now expect a move to 1.3720, potentially 1.3750. To sustain the buildup in momentum, GBP must hold above the ‘strong support’ level, currently at 1.3595."