Range-bound trading expected – UOB Group

The GBP/USD pair is anticipated to trade within a range between 1.3640 and 1.3710, following a recent decline. The outlook suggests that while downward momentum has eased, GBP is unlikely to decline further, note Quek Ser Leang, Senior Technical Strategist and Peter Chia, Senior FX Strategist at UOB

GBP/USD range trading outlook

“With no further increase in downward momentum, and given that conditions remain oversold, GBP is unlikely to decline further. Today, GBP is more likely to trade in a range, probably between 1.3640 and 1.3710.”

“We also indicated that “the current pullback has scope to extend to 1.3570, and that the likelihood of a clear break below this level is not high.” We will continue to hold the same view as long as 1.3755 (‘strong resistance’ level was at 1.3805 yesterday) is not breached.”

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