GBP/USD might rise, potentially towards 1.3410 – UOB Group

Finance

GBP/USD might rise, potentially towards 1.3410 – UOB Group

Pound Sterling (GBP) is likely to trade in a range between 1.3290 and 1.3360. In the longer run, GBP is expected to continue to rise, potentially to 1.3410, UOB Groups FX analysts Quek Ser Leang and Peter Chia note.

GBP is likely to trade in a range between 1.3290 and 1.3360

24-HOUR VIEW: “Last Thursday, GBP rose to 1.3385 before retreating. When GBP was at 1.3325 in the early Asian session on Friday, we highlighted that ‘upward pressure has eased, and instead of continuing to rise today, GBP is more likely to trade within a range of 1.3300/1.3365’. However, GBP traded within a narrower range than expected (1.3318/1.3362), closing largely unchanged at 1.3333 (+0.05%). The price action provides no fresh clues, and we continue to expect GBP to trade in a range today, most likely between 1.3290 and 1.3360.”

1-3 WEEKS VIEW: “Tracking our positive GBP view since late last month, we indicated last Thursday (04 Dec, spot at 1.3345) that GBP ‘is expected to continue to rise, potentially to 1.3410’. Although upward momentum has slowed somewhat, we will maintain our view for now. Overall, only a breach of 1.3265 (‘strong support’ level was previously at 1.3250) would indicate that GBP has moved into a range-trading phase.”