UOB analysts Quek Ser Leang and Lee Sue Ann note that GBP/USD’s latest surge has stretched short-term momentum, but there is still room to test 1.3730 intraday, with limited odds of a sustained break higher. Over the next 1–3 weeks, the bank sees improving upside momentum, but stresses that a daily close above 1.3730 is required to target 1.3785.

Sterling rebound faces key resistance

"The advance appears to be running ahead of itself, but there is scope for GBP to test 1.3730."

"The likelihood of a sustained rise above this level today is not high."

"Downward momentum had faded, and there has been an increase in upward momentum, but it is not strong enough to indicate a continued advance in GBP just yet."

"GBP must close above 1.3730 first before a move to 1.3785 is likely."

"The probability of GBP closing above 1.3730 will increase in the next few days as long as 1.3600 (‘strong support’ level) is not breached."

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