The near-term bias is towards the upside, but the British pound may not break above 1.3505, noted UOB Group forex analysts Kwek Ser Liang and Peter Chia.
The British pound may not be able to breach the 1.3505 level
24-hour view: “Yesterday, the British pound rose to a high of 1.3491 before pulling back, closing slightly higher by 0.12% at 1.3443. The pullback amid slowing momentum and overbought conditions suggests that the pound is unlikely to rise further. Today, we expect the pound to trade in a range bound range, most likely between 1.3420 and 1.3470.”
1-3 Week View: “Despite advancing at a rapid pace over the past couple of days, the GBP has not gained much momentum. However, the near-term trend is tilted towards the upside towards 1.3505. Based on the current momentum, GBP may not break clearly above this level. On the downside, a break above 1.3380 may indicate that GBP is more likely to trade in a range rather than trading with a bullish bias.”
