GBP/USD: Major resistance at 1.3445 is likely out of reach - UOB Group

Pound Sterling (GBP) could edge higher and test 1.3420; the major resistance at 1.3445 is likely out of reach for now. In the longer run, GBP could continue to rise; based on the current momentum, it might find 1.3445 difficult to break, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

GBP can continue to rise

24-HOUR VIEW: "After GBP rose to 1.3403 and pulled back, we highlighted yesterday that 'further GBP strength seems likely.' However, we indicated that 'any advance is likely part of a higher range of 1.3325/1.3410.' GBP subsequently traded between 1.3336 and 1.3395. The price movements have resulted in a slight increase in upward momentum. Today, we expect GBP to edge higher and test 1.3420. The major resistance at 1.3445 is likely out of reach for now. Support is at 1.3375; a breach of 1.3355 would mean that the current mild upward pressure has eased."

1-3 WEEKS VIEW: "We revised our view from neutral to positive yesterday (20 May, spot at 1.3365), indicating that GBP 'could continue to rise.' However, we highlighted that, 'based on the current momentum, any advance might find the late April high of 1.3445 difficult to break.' There is no

change in our view, but the 'strong support' has moved higher to 1.3315 from yesterday's level of 1.3290."