United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect GBP/USD to continue trading sideways between 1.3400 and 1.3460 after a strong rise failed to extend. On a 1–3 week horizon, near‑term downward pressure is seen as having eased, with the Pound likely to range between 1.3330 and 1.3530. Longer term, a weekly close below 1.3300 could trigger a slide toward 1.2945/1.3010.

Pound-Dollar consolidates as pressure eases

"24-HOUR VIEW: Following the sharp rise in GBP to a high of 1.3463 two days ago, we highlighted yesterday that “despite the relatively strong rise, upward momentum has not increased significantly.” However, we were of the view that GBP “could retest the 1.3465 level before levelling off.” GBP did not retest 1.3465, as it traded sideways between 1.3394 and 1.3455 before closing largely unchanged at 1.3430 (-0.03%). Further sideways trading appears likely today, probably between 1.3400 and 1.3460."

"1-3 WEEKS VIEW: Our update from Tuesday (19 May, spot at 1.3435) remains valid. As highlighted, the recent “downward pressure has eased,” and GBP “is likely to range-trade between 1.3330 and 1.3530 for now.” "

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