United Overseas Bank’s (UOB) Quek Ser Leang judges GBP/USD price action as range-bound after an unexpected intraday spike and sharp drop. The pair is now expected to hold between 1.3400 and 1.3460 in the short term, with a broader 1.3385–1.3495 range for the coming weeks. Momentum indicators are flat, suggesting neutral direction with wider supports at 1.3210 and 1.3160.
Sterling-Dollar momentum fades into consolidation
"24-HOUR VIEW: Yesterday, we highlighted that GBP “is likely to trade in a range between 1.3420 and 1.3475.” The subsequent price movements did not turn out as expected. GBP rose to 1.3481 before declining sharply to a low of 1.3414. The decline could extend further, but given the lack of any significant increase in downward momentum, GBP is likely to remain within a 1.3400/1.3460 range."
"1-3 WEEKS VIEW: Our update from yesterday (20 Jul, spot at 1.3445) remains valid. As highlighted, the recent “build-up in upward momentum has faded,” and GBP “has likely entered a range-trading phase between 1.3385 and 1.3495.”."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
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