Analysts at UOB Group, Quek Ser Leang and Peter Chia, suggest that the British Pound (GBP) may attempt a move toward 1.3445, though the key resistance level at 1.3475 is unlikely to be challenged in the near term.
Short-Term Outlook: GBP Gains Momentum, Eyes 1.3445
Following a sharp dip to 1.3249 on Tuesday, GBP/USD rebounded strongly. UOB noted on Wednesday that the pair was likely to trade sideways between 1.3290 and 1.3365, given oversold conditions. However, instead of consolidating, the Pound advanced further, reaching a high of 1.3408.
This upward move has built modest bullish momentum, and UOB now sees a potential test of 1.3445. However, they note that 1.3475 – a major resistance level – is unlikely to come into play today.
To maintain the current bullish bias, GBP/USD must hold above 1.3360, with minor support at 1.3375.
1–3 Week View: Pound Moves into Sideways Range
UOB had turned bearish on GBP last week, initially forecasting a possible decline toward 1.3200. However, the recent recovery has seen the pair break above the key resistance at 1.3390, leading to a shift in outlook.
With downward momentum now fading, UOB expects GBP/USD to trade sideways in the near term, within a range of 1.3320 to 1.3475.