UOB’s strategists Quek Ser Leang and Lee Sue Ann note GBP/USD failed to extend gains after touching 1.3576, instead dipping to 1.3464 before closing near 1.3520. They see no strong momentum either way and expects intraday trade between 1.3480 and 1.3545, while the broader 1–3 week bias keeps the pair in a 1.3440–1.3580 range.

Pound-Dollar stuck in band

"24-HOUR VIEW: GBP rose to 1.3576 two days ago and then quickly retreated. Yesterday, we noted that “there has been no significant increase in upward momentum, and GBP is unlikely to rise much further.” We expected GBP to “trade between 1.3500 and 1.3580.” We were incorrect as GBP dropped briefly to 1.3464 and then rebounded to close slightly lower at 1.3519 (-0.10%). There is no increase in downward momentum with the brief decline, and the current price movements appear to be part of a range-trading phase. Today, we expect GBP to trade between 1.3480 and 1.3545."

"1-3 WEEKS VIEW: In our most recent narrative was from two days ago (27 Apr, spot at 1.3515), we highlighted that the recent price action “suggests that GBP remains in a range-trading phase, most likely between 1.3440 and 1.3580.” We continue to hold the same view for now."

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