According to UOB’s Quek Ser Leang, GBP/USD’s sharp rebound has left scope to test major resistance at 1.3445, though a clear break is seen as unlikely in the near term. Short-term support lies at 1.3390 and 1.3360. Over one to three weeks, strengthened momentum could open 1.3480 if 1.3445 gives way, while broader ranges dominate over months.

Pound testing key resistance band

"24-HOUR VIEW: GBP fell to 1.3315 on Wednesday and then rebounded strongly. When GBP was at 1.3390 in the early Asian session yesterday, we highlighted that “the sharp rebound appears to be overdone, but there is a chance for GBP to test 1.3420 before the risk of a pullback increases.” We added, “the major resistance at 1.3445 is unlikely to come into view.” GBP then rose to 1.3430, pulled back to 1.3381 before moving back up to close at 1.3409 (+0.14%). While there has been no clear increase in upward momentum, there is a chance for GBP to test the major resistance at 1.3445. A clear break above this level is unlikely. Support is at 1.3390."

"1-3 WEEKS VIEW: Tracking our positive GBP view from late last month, we highlighted yesterday (09 Jul, spot at 1.3390) that “while the risk remains on the upside, given that there has been no further increase in upward momentum, it is left to be seen if GBP can reach 1.3445.” GBP subsequently rose to a high of 1.3430. Upward momentum has strengthened somewhat, and should GBP break above 1.3445, the next level to watch is 1.3480. On the downside, a breach of 1.3360 (‘strong support’ level was at 1.3315 yesterday) would indicate that GBP is not advancing further."

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