British Pound: Advance stalled with neutral range view against US Dollar – UOB

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann highlight that GBP/USD’s late-month advance has stalled, with the pair rebounding to 1.3442 before closing at 1.3387. Intraday, the British Pound (GBP) is expected to trade between 1.3360 and 1.3430. Over 1-3 weeks, they maintain a neutral stance, looking for range-trading between 1.3320 and 1.3445, while longer-term supports sit at 1.3210 and 1.3160.

Pound-Dollar trapped in sideways band

"24-HOUR VIEW: After GBP declined as we expected two days ago, we highlighted yesterday that “there is scope for GBP to dip below 1.3340 and test 1.3320.” We added, “to keep the momentum going, GBP must hold below 1.3390.” Our view was incorrect, as after dipping to a low of 1.3346, GBP jumped during the NY session, reaching a high of 1.3442. GBP pulled back sharply from the high to close at 1.3387 (+0.31%). Despite the sharp advance, there has been no clear increase in upward momentum. The current price movements are likely part of a range-trading phase, probably between 1.3360 and 1.3430."

"1-3 WEEKS VIEW: Two days ago (13 Jul, spot at 1.3375), 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.” Although GBP rose near the top of our expected range yesterday with a high of 1.3442, it retreated quickly from the high. There has been no shift in momentum indicators, and we continue to expect GBP to trade in a range between 1.3320 and 1.3445."

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