United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann see GBP/USD consolidating after a brief push above 1.3420 failed to gain traction. Intraday, they expect any pullback to stay within 1.3330–1.3395 and not break clearly below 1.3330. On a 1–3 week and 1–3 month horizon, the Pound is seen range-bound, with broader parameters between 1.3210 and 1.3655.

Pound seen confined to broad band

"24-HOUR VIEW: GBP rose to 1.3411 two days ago and then pulled back. When GBP was at 1.3370 in the early Asian session yesterday, we noted that “despite the advance, GBP has not gained much momentum,” and we expected GBP to “trade in a range between 1.3330 and 1.3400.” The subsequent price movements did not unfold as expected. GBP rose briefly to 1.3424 before pulling back to close little changed at 1.3367 (-0.08%). While the pullback has gathered some momentum, and GBP could edge lower, any decline is likely part of a lower range of 1.3330/1.3395. In other words, GBP is unlikely to break clearly below 1.3330."

"1-3 WEEKS VIEW: Our most recent narrative was from Monday (08 Jun, spot at 1.3330), when we indicated that GBP “must break clearly below 1.3300 before further declines toward 1.3240 can be expected.” Yesterday, GBP broke our ‘strong resistance’ level at 1.3410, printing a high of 1.3424. Downward momentum has faded, and for the time being, GBP is likely to trade in a range between 1.3300 and 1.3435."

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