The British pound is trading in a narrow range against the US dollar with limited room for gains in the coming sessions, according to United Overseas Bank currency analysts. Following a recent spike to 1.3506, GBP/USD has settled into quiet consolidation between 1.3423 and 1.3456, UOB’s Quek Ser Leang and Lee Sue Ann reported. The pair is now expected to remain boxed within a 1.3425 to 1.3470 trading band in the near term, suggesting momentum has stalled after the earlier rally.
The forecast signals reduced volatility for sterling traders after recent upward movement, with technical resistance capping further advances. Market participants should prepare for range-bound conditions rather than directional moves, limiting opportunities for breakout strategies. The consolidation phase indicates neither bulls nor bears have sufficient conviction to push the pair decisively outside this narrow corridor.
FXnCO Insight
Traders should focus on range-trading strategies within the 1.3425–1.3470 band rather than chasing breakouts, as UOB sees limited upside scope for GBP/USD in the immediate term.
Source: FXStreet