British Pound: Mild downside bias against US Dollar - UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann observe that GBP/USD has held modest gains around 1.3230, but recent guidance from the Bank of England on higher-for-longer rates has not translated into a clear bullish trend. The pair is expected to trade within 1.3215–1.3260 intraday, while over the next 1–3 weeks Sterling could edge lower inside a broader 1.3140–1.3280 band.

Sterling bias tilts slightly to downside

"24-HOUR VIEW: We expected GBP to edge lower yesterday, but we indicated that it “is likely to stay within a 1.3180/1.3235 range.” GBP subsequently dipped to 1.3185, briefly rose to touch 1.3249 before closing modestly higher at 1.3230 (+0.13%). The current price movements are likely part of a range-trading phase. Today, we expect GBP to trade between 1.3215 and 1.3260."

"1-3 WEEKS VIEW: After our previous view for GBP to edge higher was invalidated, we highlighted yesterday (08 Oct, spot at 1.3215) that “there has been a slight increase in downward momentum, but it is insufficient to indicate a sustained decline.” We also indicated that GBP “could edge lower, but any decline is likely to be part of a lower range of 1.3140/1.3280.” Our view remains unchanged"

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

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FXStreet Insights Team

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