GBP / USD still shows strong resistance at 1.3380 – UOB

A greater rise in the pound / dollar is not ruled out, although faces a solid hurdle at 1.3380 before hitting 1.3420, according to analysts UOB Group.

24 hour perspective: “We highlighted yesterday that while the rapid advance seemed to be ahead of itself, the strong bullish momentum suggested that the GBP could further strengthen to 1.3300, with a lower likelihood of extension to 1.3330. Our opinion was not wrong, as the pound rose to a high of 1.3322, but the subsequent sell-off was unexpected (low of 1.3189) The upward momentum has dissipated to a greater or lesser extent and the current move is seen as part of a consolidation phase. For today, the GBP is likely to trade sideways between 1.3165 and 1.3275“.

Next 1-3 weeks: “We have held the same view since last Friday (Nov 6, pair at 1.3130) in which ‘the bullish momentum had improved, but the GBP had to move and stay above the main resistance at 1.3200 before it broke. I could look forward to further sustained progress. ‘ After the GBP pulled back from a high of 1.3207, yesterday (Nov 10) we highlighted that another attempt to move clearly above 1.3200 was not yet ruled out and only a breakout of 1.3065 would indicate that the current upward pressure had eased. Subsequently, the British pound spiked to a high of 1.3278 before closing on a firm note at 1.3276 (+ 0.87%). Further strength for the British pound seems likely, although it is too early to expect a move towards the year high at 1.3481. On a short term note, 1.3380 and 1.3420 they are already fairly strong resistance levels. With everything, the current strength of the pound is considered intact as long as it does not move below 1.3120 (The ‘strong support’ level was at 1.3065 yesterday) “.