British Pound: Range trading expected against US Dollar - UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report that GBP/USD broke below prior support at 1.3340, with intraday downside momentum modest but sufficient to keep price action constrained between 1.3315 and 1.3365.
United Overseas Bank's analysts report that the GBP/USD currency pair broke below a key support level at 1.3340, with the price constrained between 1.3315 and 1.3365. Over a one to three week period, earlier bullish momentum has diminished, and the pair is now in a range-trading phase between 1.3290 and 1.3390. Longer-term analysis suggests potential rebounds toward the 1.3480 mark.
Yesterday, the GBP was trading at 1.3375, and the analysts had previously identified a range-trading phase between 1.3355 and 1.3400. However, they were mistaken, as the GBP fell to a low of 1.3326, breaking below 1.3355. Traders should expect the GBP to remain within the 1.3315/1.3365 range for now. Over the next three weeks, the analysts turned positive on the GBP, anticipating a potential rise to 1.3440.
However, the recent price drop and failure to break above the 1.3340 support level suggest that upward momentum has faded, and GBP is now in a range-trading phase. The GBP is expected to trade between 1.3290 and 1.3390 for the time being.
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