GBP/USD strong resistance lies at 1.4380/1.4450 – UOB

According to the research team at UOB Group, the pair faces a tough up barrier in the 1.4380/1.4450 band.

Key Quotes

“We have held a neutral view on GBP for close to 3 weeks and while the movement has been relatively large, it has failed to maintain a hold neither below the key 1.4000 support nor above the 1.4400 resistance”.

“The sharp rebound yesterday has clearly eased the recent short-term downward pressure and from here, the risk has shifted back to the upside”.

“However, strong resistances are apparent at 1.4380 and 1.4450 and it is premature to expect a move beyond these levels”.

“Overall, we continue to hold a neutral mid-term view even though the short-term outlook is supportive and a move higher to test 1.4380/1.4450 would not be surprising unless there is a dip back below 1.4105/10 in the next few days”.