The British Pound has paused its recent pullback against the US Dollar after a sharp correction from highs near 1.3556, according to United Overseas Bank strategists Quek Ser Leang and Christopher Wong. The cable is now expected to consolidate within a narrow intraday range between 1.3450 and 1.3520 as momentum stabilizes.
The correction follows recent strength in Sterling that pushed the pair above 1.35 before profit-taking and dollar demand triggered the reversal. Traders are now watching whether this consolidation phase represents a temporary pause before further declines or a base for renewed upside attempts. The tight trading band suggests the market is awaiting fresh catalysts to determine the next directional move.
UOB’s technical assessment indicates neither bulls nor bears have control in the immediate term, with the currency pair trapped in a narrow technical range that limits both upside and downside potential for now.
FXnCO Insight
Traders should position for range-bound conditions in GBP/USD between 1.3450-1.3520 and await a clear breakout before committing to directional bets.
Source: FXStreet