British Pound: Advance has ended with range trade likely against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann highlight that GBP/USD gapped lower, dropping to 1.3343 and closing at 1.3346 as the Dollar firmed. Short‑term momentum has cooled, but they still see scope for a dip toward 1.3320, while the broader view has turned neutral, with Sterling expected to trade between 1.3320 and 1.3445 in coming sessions.

Sterling shifts to neutral range view

"24-HOUR VIEW: GBP closed at 1.3402 last Friday, but it gapped lower on the open yesterday. When it was at 1.3375, we indicated that “the rapid increase in momentum suggests GBP could break below 1.3360.” We also indicated that “the next support at 1.3340 is likely out of reach.” We were not wrong, as GBP broke below 1.3360 and dropped to a low of 1.3343. Despite the decline, downward momentum has not increased significantly. However, there is scope for GBP to dip below 1.3340 and test 1.3320. Based on the prevailing momentum, a clear break below 1.3320 appears unlikely. To keep the momentum going, GBP must hold below 1.3390, with minor resistance at 1.3375"

"1-3 WEEKS VIEW: Yesterday (13 Jul, spot at 1.3375), we revised our view from positive to neutral. We highlighted that “the GBP advance from late last month has ended.” We added, “for the time being, we expect GBP to trade in a range between 1.3320 and 1.3445.” While we did not quite expect the subsequent sharp decline to 1.3343, we will continue to hold the same view for now. Looking ahead, should GBP break below 1.3320, it could trigger a deeper pullback."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD strengthens above 1.3350 ahead of US CPI data

The GBP/USD pair trades in positive territory around 1.3360 during the Asian trading hours on Tuesday. However, the potential upside for the major pair might be limited amid fears of an escalating US-Iran conflict. The US June Consumer Price Index inflation report will take center stage later on Tuesday.

EUR/USD posts modest gains above 1.1350 as traders await US CPI inflation release

The EUR/USD pair posts modest gains near 1.1385 during the Asian trading hours on Tuesday. Nonetheless, the potential upside for the major pair might be limited amid renewed US military strikes against Iran. Traders will take more cues from the US June Consumer Price Index inflation data, which will be released later on Tuesday.

Gold recovers further beyond $4,000; focus remains on US CPI, Fed's Warsh

Gold builds on its steady intraday recovery from a nearly two-week low, touched during the Asian session, and climbs to the $4,023-$4,024 region in the last hour. The US Dollar pauses following a strong two-day rally as bulls turn cautious ahead of the latest US consumer inflation figures and Federal Reserve Chair Kevin Warsh's testimony. This is seen as a key factor offering some support to the bullion.

Trump urges Senate to pass CLARITY Act as crypto bill nears crucial vote

US President Donald Trump on Monday urged the US Senate to swiftly pass the Digital Asset Market Clarity Act, following the death of Senator Lindsey Graham, who passed away unexpectedly over the weekend at age 71. "In honor of Senator Lindsey Graham, a big supporter, the US Senate should pass the CLARITY Act," Trump wrote in a Truth Social post.

Oil jumps, bonds break and the AI trade starts losing its shine

Wall Street finally ran into the collision course it had spent weeks pretending would never happen. Oil surged, bonds sold off, the dollar caught a bid, and the most crowded corner of the equity market began to buckle under its own weight.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.