Pound-Dollar rebound capped below resistance says UOB strategist

United Overseas Bank (UOB) strategist Quek Ser Leang has highlighted that the British Pound (GBP) against the US Dollar (USD) has shown a rebound, reaching 1.3238 after failing to extend a decline from the previous Thursday. However, the intraday gains are expected to remain within a narrow range of 1.3215 to 1.3265.

In a 24-hour view, Quek noted that while the pound initially dipped to 1.3184, it rebounded to 1.3256. Despite this recovery, the upward momentum remains unclear, suggesting that any further advances are likely to stay within the specified range. The strategist emphasized that breaking above 1.3265 is unlikely.

Looking ahead at the 1-3 week outlook, Quek maintained a mildly negative stance on the pound. He anticipates a move toward the major support level at 1.3140, with 1.3265 acting as strong resistance. This view was initially expressed last Friday when the spot rate was at 1.3195, and it remains unchanged as long as the pound does not breach the 1.3265 resistance level.