In the opinion of UOB Group’s Markets Strategist Quek Ser Leang and Rates Strategist Victor Yong, further upside in GBP/USD could challenge the 1.1760 region in the next few weeks.

Key Quotes

24-hour view: “Our expectation for GBP to ‘rise further’ yesterday did not materialize as it traded between 1.1550 and 1.1645. The price movement is likely part of a consolidation and we expect GBP to trade within a range of 1.1485/1.1625.”

Next 1-3 weeks: “Yesterday (27 Oct, spot at 1.1630), we held the view that GBP is still strong and is likely to strengthen further. We indicated that the next level to monitor is at 1.1760. There is no change in our view for now but overbought short-term conditions could lead to a couple of days of consolidation first. Overall, only a break of 1.1440 (no change in ‘strong support’ level from yesterday) would indicate that the GBP strength that started earlier this week has ended.”