Pound Upsurge Hits Snag Near 1.3555 Against Dollar

The British Pound (GBP) has continued its rally, extending last week's gains. According to United Overseas Bank's (UOB), the currency could test 1.3555 against the US Dollar on a 1-3 week horizon, but a sustained break above this level is seen as unlikely.

Quek Ser Leang and Lee Sue Ann from UOB note that GBP/USD has been overbought, which should confine intraday moves to a 1.3490-1.3535 band.

Last Friday, the pound soared, closing 0.10% higher at 1.3507. While it could rise further, slowing momentum and overbought conditions suggest that any advance will be contained within this range.