British Pound: Upside capped near 1.3555 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note GBP/USD briefly traded above 1.3535 to 1.3540 before slipping back to close at 1.3496. Intraday, the pair is seen range-trading between 1.3475 and 1.3525. Over 1–3 weeks, they maintain a mildly constructive view, with scope to test 1.3555 but limited prospects for sustained gains beyond that level.

Pound-Dollar holds in tight consolidation band

"24-HOUR VIEW: While we indicated yesterday that “there is a chance for GBP to edge higher,” we pointed out that “any advance is likely to be contained within a 1.3490/1.3535 range.” During the early NY session, GBP rose briefly above 1.3535, printing a high of 1.3540 before dropping back down to a low of 1.3488. GBP closed little changed at 1.3496 (-0.09%). The current price movements appear to be part of a range-trading phase, most likely between 1.3475 and 1.3525."

"1-3 WEEKS VIEW: We have held a slightly positive GBP view since last Monday. In our most recent narrative from Tuesday (11 Aug, spot at 1.3510), we indicated that while GBP “could test 1.3555, based on the prevailing momentum, a continued rise above this level appears unlikely.” Yesterday, GBP rose briefly to 1.3540 before pulling back to close at 1.3496 (-0.09%). Upward momentum is starting to slow, and a breach of 1.3460 (no change in ‘strong support’ level) would indicate that GBP has entered a range-trading phase."

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