According to UOB’s Quek Ser Leang, the British Pound (GBP) has experienced a sharp rebound against the US Dollar (USD), creating an upside risk toward the major resistance level at 1.3445. However, a clear break above this resistance is considered unlikely in the near term, as upward momentum has not increased significantly [1]. On Wednesday, GBP fell to 1.3315 before rebounding strongly. During the early Asian session, GBP was at 1.3390, and UOB analysts noted that while the rebound appeared overdone, there was still a chance for GBP to test 1.3420 before a potential pullback. GBP subsequently rose to 1.3430, pulled back to 1.3381, and closed at 1.3409, marking a 0.14% increase [1].
Short-term support levels are identified at 1.3390 and 1.3360, with a 'strong support' previously at 1.3315. Over the next one to three weeks, if GBP manages to break above the 1.3445 resistance, the next level to watch is 1.3480. Conversely, a breach of the 1.3360 support would indicate that GBP is not advancing further [1].
The broader outlook suggests that while the risk remains on the upside, the lack of a clear increase in upward momentum means it is uncertain whether GBP can decisively break above the 1.3445 resistance. Broader trading ranges are expected to dominate over the coming months [1].
CONCLUSION
The British Pound is showing upside risk against the US Dollar, with key resistance at 1.3445 in focus. However, analysts see a clear break above this level as unlikely in the near term, and broader trading ranges are expected to persist.