**BREAKING: Sterling Rally Loses Steam, UOB Flags Downside Risk Against Dollar**
The British pound’s recent advance against the US dollar has stalled and reversed, with GBP/USD gapping lower after a brief breach above 1.3445, according to currency strategists Quek Ser Leang and Lee Sue Ann at UOB. The pair has now entered range-bound trading as bullish momentum fades.
UOB analysts warn that downward momentum is building, with the currency pair facing immediate risk of testing support below 1.3360. However, they assess that a deeper decline to 1.3320 remains unlikely in the near term, suggesting the selloff may be contained for now.
The shift follows what appeared to be a breakout attempt that quickly failed, leaving sterling vulnerable to further weakness. Traders holding long GBP positions from the recent rally are now facing pressure as technical indicators turn bearish.
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FXnCO Insight
** GBP/USD longs should consider tightening stops below 1.3360 or taking profits, as failed breakouts often trigger accelerated reversals in range-trading conditions.
Source: FXStreet