GBP/USD: Sideways trade inside broad band – UOB

United Overseas Bank (UOB) Strategists Quek Ser Leang and Lee Sue Ann describe GBP/USD momentum indicators as mostly flat, expecting intraday consolidation between 1.3475 and 1.3530. On a 1–3 week horizon, they maintain that earlier upside momentum has faded and the Pound (GBP) is likely to oscillate within a wider 1.3400–1.3600 band, with no fresh directional bias highlighted in the latest update.

Pound seen consolidating in wide corridor

"24-HOUR VIEW: Subsequent to GBP’s price action on Tuesday, we indicated yesterday that “there has been no clear shift in either downward or upward momentum,” and we expected GBP to “trade between 1.3465 and 1.3535.” GBP then traded within a relatively tight range of 1.3493/1.3534, closing largely unchanged at 1.3501 (-0.03%). Momentum indicators are still mostly flat, but the softer underlying tone suggests GBP is likely to trade in a range of 1.3475/1.3530 today."

"1-3 WEEKS VIEW: We highlighted on Monday (20 Apr, spot at 1.3485) that the recent upward momentum has “fizzled out” and stated that GBP “is expected to trade in a range between 1.3400 and 1.3600 for now.” There is no change in our view."

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