According to United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann, the British Pound (GBP) experienced a notable shift against the US Dollar (USD), with GBP/USD gapping lower to reach a low of 1.3343 and closing at 1.3346 as the Dollar strengthened [1]. The analysts observed that short-term momentum for GBP/USD has cooled, and while there is still potential for the pair to dip toward 1.3320, the broader outlook has turned neutral. They now expect Sterling to trade within a range of 1.3320 to 1.3445 in the coming sessions [1].
On a 24-hour view, GBP closed at 1.3402 last Friday before opening lower. The analysts had previously indicated that the rapid increase in momentum suggested GBP could break below 1.3360, which was confirmed as the currency pair dropped to 1.3343. Despite this decline, they noted that downward momentum has not increased significantly, though there remains scope for GBP to test support at 1.3320. However, a clear break below this level appears unlikely unless GBP remains below 1.3390, with minor resistance at 1.3375 [1].
From a 1-3 week perspective, the analysts revised their view from positive to neutral, stating that the GBP advance from late last month has ended. They expect GBP/USD to trade in a range between 1.3320 and 1.3445 for the time being. Should GBP break below 1.3320, it could trigger a deeper pullback [1].
No specific market reactions or analyst opinions beyond the neutral outlook and potential for a deeper pullback were discussed in the article [1].
CONCLUSION
The British Pound's recent advance against the US Dollar has ended, with analysts now expecting range-bound trading between 1.3320 and 1.3445. While a dip toward 1.3320 is possible, a significant break lower appears unlikely unless momentum shifts further. The market outlook for GBP/USD is now neutral in the short to medium term.