United Overseas Bank’s (UOB) Quek Ser Leang reports GBP/USD slipping but lacking strong downside momentum, with intraday trade expected between 1.3420 and 1.3475. The prior bullish view has faded after a break of 1.3450 support, and the pair is now seen in a 1.3385–1.3495 range. Over 1–3 months, broader supports lie at 1.3210 and 1.3160.

Pound loses momentum and consolidates

"24-HOUR VIEW: We expected GBP to “trade in a range between 1.3450 and 1.3520” last Friday. We did not expect GBP to drop to 1.3427. Despite the decline, there has been no clear increase in downward momentum and the current price movements are likely part of a range-trading phase, expected to be between 1.3420 and 1.3475."

"1-3 WEEKS VIEW: We turned positive on GBP last Thursday (16 Jul, spot at 1.3540), indicating that “the renewed upward momentum suggests that GBP has resumed its advance.” We also indicated that “the level to monitor is 1.3590.” On Friday, GBP fell and broke below our ‘strong support’ level at 1.3450. The build-up in momentum has faded, and GBP has likely entered a range-trading phase between 1.3385 and 1.3495."

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