United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann maintain a positive 1–3 week outlook for GBP/USD, with 1.3700 still in sight as long as the pair holds above 1.3605. While the near-term tone has softened and spot has slipped below the bank’s expected 1.3630–1.3665 intraday range, the broader upside scenario remains valid unless strong support at 1.3605 gives way.

1.3700 remains in focus while 1.3605 holds

“24-HOUR VIEW: Following Monday’s price action, we noted yesterday that “there has been no shift in either downward or upward momentum,” and we held the view that GBP “is likely to continue to trade in a range between 1.3615 and 1.3660.” GBP then traded within a narrower range than expected (1.3623/1.3655) before closing modestly higher at 1.3650 (+0.15%). While further range-trading appears likely today, the firmer underlying tone suggests GBP is likely to trade in a higher range of 1.3630/1.3665.”

“1-3 WEEKS VIEW: We turned positive on GBP last Monday (17 Aug, spot at 1.3540). On Friday (21 Aug, spot at 1.3640), we indicated that GBP “could continue to rise to 1.3700.” There is no change in our view. On the downside, if GBP breaks below 1.3605 (‘strong support’ level previously at 1.3585), it will mean that 1.3700 is out of reach.”