British Pound: UOB Expects Range-Bound Trading Against US Dollar

GBP/USD’s bullish momentum has ebbed, leaving the pair in a range-trading phase, according to United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann. Following a break below the previous support level of 1.3340, intraday downside momentum remains modest but sufficient to confine price action to 1.3315–1.3365. Their 1–3 week outlook puts the trading range at 1.3290–1.3390, although the longer-term analysis continues to indicate potential for rebounds towards 1.3480.

Is GBP/USD settling into a range as bullish momentum fades?

"24-HOUR VIEW: When GBP was at 1.3375 yesterday, we indicated that “the current price movements still appear to be part of a range-trading phase, likely between 1.3355 and 1.3400.” We were incorrect, as GBP fell and broke below 1.3355, reaching a low of 1.3326. Downward momentum has increased, albeit not significantly. Today, GBP could weaken, but based on the prevailing momentum, it should stay within a 1.3315/1.3365 range."

"1-3 WEEKS VIEW: We turned positive on GBP in the middle of the month. In our most recent narrative from last Wednesday (21 Oct, spot at 1.3375), we highlighted that “there is scope for GBP to rise to 1.3440 next.” Yesterday, GBP fell and broke below our ‘strong support’ level at 1.3340 (low has been 1.3326). Upward momentum has faded, and GBP has likely entered a range-trading phase. For the time being, we expect GBP to trade between 1.3290 and 1.3390."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Learn more.)