GBP/USD: Back into range after failed breakout – UOB
|UOB strategists Quek Ser Leang ve Lee Sue Ann note that GBP/USD reversed sharply from 1.3575 to 1.3447, invalidating the earlier bullish bias. Intraday, they expect a consolidation between 1.3455 and 1.3525 as the latest drop looks excessive. Over 1–3 weeks, Sterling is now seen back in a range‑trading phase between 1.3435 and 1.3605.
Sterling retreats into broader consolidation band
"GBP retreated after reaching a high of 1.3575, but during the NY session, it plunged to a low of 1.3447. GBP recovered from the low to close at 1.3481 (-0.58%). The sharp drop appears excessive, and instead of continuing to decline, GBP is more likely to trade in a range today, probably between 1.3455 and 1.3525."
"On Monday (23 Feb, spot at 1.3510), we highlighted that “the current price movements in GBP appear to be part of a range-trading phase, and for the time being, we expect GBP to trade between 1.3435 and 1.3605.” After GBP rose two days ago, we indicated that “the risk of GBP breaking above 1.3605 is increasing and will continue to increase as long as GBP holds above the ‘strong support’ level, currently at 1.3475.”"
"Our view was invalidated quickly as GBP fell and broke below our ‘strong support’ level. The buildup in momentum has faded, and GBP now appears to be back in a range-trading phase between 1.3435 and 1.3605."
"GBP/USD could decline further within a descending consolidation phase; any further pullback should find solid support at 1.2945. (dated 05 Dec 2025, 1.3215)"
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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