According to United Overseas Bank’s (UOB) Quek Ser Leang, the British Pound (GBP) has shifted into a broader range against the US Dollar (USD) after losing its previous bullish momentum. The GBP/USD pair slipped and broke below the 1.3450 support level, which had previously been identified as a key threshold for continued upward movement. As a result, the pair is now expected to trade within a range of 1.3385 to 1.3495 over the next one to three weeks, with intraday expectations narrowed to 1.3420 to 1.3475 [1].
The analyst notes that, despite the recent decline to 1.3427, there has been no clear increase in downside momentum. This suggests that the current price action is part of a consolidation phase rather than the start of a new downward trend. The prior positive outlook for GBP, which was based on renewed upward momentum and a target of 1.3590, has faded following the break of the 1.3450 support [1].
Looking further ahead, UOB identifies broader support levels for GBP/USD at 1.3210 and 1.3160, indicating where the pair might find stability if further declines occur. However, for now, the market is expected to remain in a range-trading environment, with no strong directional bias evident [1].
CONCLUSION
The British Pound has lost its recent bullish momentum against the US Dollar and is now expected to trade within a defined range. Market participants should anticipate consolidation rather than significant directional moves in the near term.