1.3480 in sight as British Pound rallies rapidly against US Dollar – UOB

1.3480 remains a potential upside target for GBP/USD. Following recent gains, United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann flag a sharp acceleration in upward momentum. Their intraday outlook sees the British Pound (GBP) holding above 1.3410, with scope to advance towards 1.3480 and higher resistance at 1.3510. For the next 1–3 weeks, they maintain that 1.3480 could be tested provided support at 1.3385 remains intact.

1.3480 in focus as Pound-Dollar upside broadens

"24-HOUR VIEW: GBP soared to a high of 1.3448 on Monday and then pulled back. Yesterday, we stated that “upward momentum has increased, but it is insufficient to indicate a continued rise.” We expected GBP “to consolidate between 1.3380 and 1.3435.” Our view of consolidation was not wrong, even though GBP traded within a narrower range of 1.3397/1.3432, closing little changed at 1.3414 (+0.04%). Today, British Pound (GBP) rose sharply and there has been a rapid increase in upward momentum. From here, as long as GBP holds above 1.3410, it could rise to 1.3480. A break above this level is not ruled out, but the next resistance at 1.3510 is likely out of reach."

"1-3 WEEKS VIEW: Following our positive GBP view from last Friday, we highlighted yesterday (03 Nov, spot at 1.3410) that “there is scope for GBP to test 1.3480.” We will continue to hold the same view as long as 1.3385 (‘strong support’ level was at 1.3360 yesterday) is not breached. Looking ahead, the next level to watch above 1.3480 is 1.3510."

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