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.)