United Overseas Bank strategists (UOB) Quek Ser Leang and Lee Sue Ann highlight that GBP/USD saw volatile swings but closed little changed, with no clear momentum shift. Intraday, they expect a 1.3360–1.3420 range, yet their 1–3 week view retains upside scope toward 1.3440, while the broader 1–3 month outlook suggests further rebound toward 1.3480 unless support at 1.3330 gives way and signals the advance has ended.

Sterling retains mild upside bias

“24-HOUR VIEW: When GBP was at 1.3395 yesterday, we indicated that “the slight increase in upward momentum suggests GBP could edge higher today, but any advance should stay within a 1.3370/1.3415 range.” The subsequent price movements did not unfold as expected. GBP edged to a high of 1.3418 before dropping sharply to a low of 1.3355. GBP rebounded from the low to close largely unchanged at 1.3402 (+0.06%). There has been no clear shift in either downward or upward momentum. Today, we expect GBP to trade between 1.3360 and 1.3420.”

“1-3 WEEKS VIEW: Our update from Wednesday (21 Oct, spot at 1.3375) still stands. As highlighted, “there is scope for GBP to rise to 1.3440 next.” On the downside, a breach of 1.3330 (no change in ‘strong support’ level) would mean the advance from late last week has run its course.”