United Overseas Bank’s (UOB) economists Quek Ser Leang and Lee Sue Ann highlight a still-positive short-term outlook for GBP/USD after recent gains above 1.3450. They see scope for the Pound (GBP) to advance toward 1.3520, but stress that a daily close above 1.3480 is required. Strong support has been raised to 1.3330, while intraday trade is expected within a 1.3390–1.3465 range.

Pound needs confirmation above resistance

"On Wednesday (08 Apr, spot at 1.3400), we indicated that “while the short-term rally appears overdone, there is scope for GBP to rise to 1.3480.”"

"After GBP soared to 1.3485 and then pulled back, we highlighted yesterday (09 Apr, spot at 1.3390) that “the upside risk remains intact, but GBP must close above 1.3480 before a move to 1.3520 can be expected.”"

"We added, “the likelihood of GBP closing above 1.3480 will remain intact as long as 1.3280 (‘strong support’ level) continues to hold.”"

"Our view remains unchanged, but we are revising the ‘strong support’ level to 1.3330 from 1.3280."

"Today, GBP could edge higher, but any advance is likely part of a higher range of 1.3390/1.3465."

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