GBP/USD seen breaking above 1.3850 near term – UOB


The outlook for Cable remains constructive with the next target at 1.3850 and beyond in the short-term horizon, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected GBP to ‘trade sideways within a 1.3765/1.3830 range’. However, GBP dropped to 1.3743 before rebounding sharply to 1.3833 during NY hours. Despite the rebound, upward momentum has not improved by all that much. However, there is room for GBP to edge above 1.3850. For today, the next major resistance at 1.3915 is not expected to come into the picture. Support is at 1.3790 followed by 1.3755.”

Next 1-3 weeks: “Our narrative from yesterday (20 Oct, spot at 1.3795) still stands. As highlighted, GBP is still strong and an advance to 1.3850 would not be surprising. While GBP is likely to break 1.3850, upward momentum is not that strong for now and 1.3915 may not come into the picture so soon. Overall, the GBP strength that started last Thursday (14 Oct, spot at 1.3665) is deemed intact as long as GBP does not move below 1.3720 (no change in ‘strong support’ level from yesterday).”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles to defend 1.1400 amid mixed concerns on US holiday

EUR/USD seesaws around intraday high near 1.1420 amid a lackluster session during early Monday morning in Europe. US bond, equities markets will be off due to Martin Luther King’s Birthday, risk catalyst will be important for fresh impulse.

EUR/USD News

GBP/USD: UK politics is in the driving seat, BoE in focus also

GBP/USD is around flat on the day so far in a quiet start to the week following a significant correction on Friday with demand for the US dollar that has otherwise been heavily offered at the start of the year. BoE hawkishness could underpin the pound as covid risks are dialled down. 

GBP/USD News

Gold bears in charge as US dollar firms in risk-off conditions

Gold renews intraday high around $1,820, up 0.20% on a day heading into Monday’s European session. Gold cheers US dollar weakness, as well as mixed sentiment in the markets, to keep the bounce off the key support confluence.

Gold News

Chainlink price eyes 35% gains as LINK flips crucial support level

LINK price shows signs that appear before the start of an uptrend. This outlook has supporting factors from a technical and an on-chain perspective. Investors can expect LINK to start a bull rally.

Read more

Week Ahead on Wall Street: Hawks swoop on bulls as nervous investors seek shelter

Another nervous start to the year as investors had initially looked to weather storms but clouds returned as the week wore on. The Fed turned increasingly hawkish and tech investors turned increasingly nervous.

Read more

Forex MAJORS

Cryptocurrencies

Signatures