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GBP/USD rebounds after spike, faces 1.3655 resistance

UOB expects upside to persist, but says a break below 1.3535 would mean the 1.3655 target is unlikely to be reached.

Reported · Written up by our desk · Major Pairs

British Pound strength remains likely against the US dollar after GBP/USD surged to 1.3630 before easing, according to guidance from United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann.

They said the rebound left short term conditions overstretched and pointed to potential firm resistance near 1.3655, noting momentum divergence that could limit further gains.

The analysts added that only a move below 1.3535, which they frame as strong support, would suggest the upside objective at 1.3655 is not coming into view.

In the near term, they expect GBP to consolidate rather than extend the breakout immediately, citing a likely trading range between 1.3570 and 1.3630.

Latest closeGBP/USD 1.354 ▲0.3%

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