Pound Sterling (GBP) may see further short-term gains, but any rebound is expected to stay within a 1.3290–1.3390 trading range, according to UOB Group’s FX strategists, Quek Ser Leang and Peter Chia.
Short-Term View (24 Hours):
Following a dip to 1.3261 during Friday’s Asian session, GBP/USD staged a strong rebound in the New York session, reaching a high of 1.3370.
UOB notes that while some further upside is possible today, it is likely to remain range-bound, with the pair expected to trade between 1.3290 and 1.3390. A clear break above or below this range is not anticipated in the near term.
Medium-Term View (1–3 Weeks):
Last week’s sharp decline had boosted bearish momentum, prompting UOB to set a downside target of 1.3200. While the recent rebound has eased the selling pressure somewhat, analysts believe that a drop toward 1.3200 still remains a possibility.
However, a break above 1.3410—which remains the key resistance level—would invalidate this bearish outlook and suggest that the downside risk has passed.
Key Levels to Watch:
- Support: 1.3290, then 1.3200
- Resistance: 1.3390, key resistance at 1.3410
Conclusion:
GBP/USD could see short-term strength, but gains are likely capped below 1.3390. The broader outlook still leans bearish unless the pair can break and hold above 1.3410.
