British Pound: Range-bound trading within a tight band against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note GBP/USD price action still looks like range trading after Friday’s close near 1.3234. Intraday, they expect the British Pound (GBP) to hold between 1.3215 and 1.3260. Over the coming 1–3 weeks, earlier mild downside pressure has faded and the pair is now expected to oscillate between 1.3170 and 1.3280.

Downward pressure eases into consolidation

"24-HOUR VIEW: When GBP was at 1.3230 last Friday, we indicated that “the current price movements are likely part of a range-trading phase between 1.3215 and 1.3260.” While GBP traded within a lower range of 1.3206/1.3250, it closed largely unchanged at 1.3234 (+0.03%). The price action still appears to be part of a range-trading phase. Today, we expect GBP to trade between 1.3215 and 1.3260."

"1-3 WEEKS VIEW: In our most recent narrative from last Thursday (08 Oct, spot at 1.3215), we indicated that “there has been a slight increase in downward momentum, but it is insufficient to indicate a sustained decline.” GBP traded in a range over the past couple of days, and the mild downward pressure has eased. From here, instead of expecting GBP to edge lower, we expect it to trade in a range between 1.3170 and 1.3280."

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