UOB analysts Quek Ser Leang and Lee Sue Ann observed a sharp opening rise in GBP/USD, noting a rapid build-up in upward momentum that could see the currency pair test 1.3505, with 1.3530 identified as a key resistance level [1]. The analysts stated that recent downward pressure on the British Pound has eased, and the currency is now likely to trade within a range of 1.3330 to 1.3530, with risks skewed toward a topside break if GBP/USD holds above the 1.3435/1.3415 support area [1].
In the short term, the analysts highlighted that GBP traded within a narrow range of 1.3416 to 1.3461 before closing unchanged at 1.3430. However, the sharp rise at the open suggests that if GBP can maintain levels above 1.3435, it could test the 1.3505 resistance, though the major resistance at 1.3530 is considered likely out of reach for now [1]. Minor support is noted at 1.3455 [1].
Looking ahead, UOB maintains that while GBP has been range-bound, the increase in short-term momentum raises the possibility of a break above 1.3530. Conversely, a break below the strong support at 1.3415 would indicate a continuation of range trading [1]. No specific market reactions or broader implications were discussed in the source article.
CONCLUSION
UOB analysts see the British Pound poised for potential upside against the US Dollar, with key resistance at 1.3530 and support at 1.3415. The market is currently range-bound, but increased momentum could lead to a topside breakout if support levels hold.